The direct listing process, also known as a direct public offering (DPO), is a way for companies to be listed on a public market by directly selling shares outside of a traditional offering to investors. The shares are priced by the issuing company without the help of investment bankers (which saves tens of millions in fees) and sold with the assistance of a commission broker. The recent move by Swedish-based music streaming company Spotify to complete a multi-billion dollar direct listing introduces a new threat to the underwriting industry.

In this video, I talk about the existing rules surrounding DPOs and compared the benefits and risks of such an issue with the traditional IPO method. The following questions will be answered;

- What are the benefits of a direct listing?
- Is Spotify’s direct listing a good idea?
- How does a bought deal work?
- Why do companies sell shares through an IPO?
- Is the IPO business corrupted?

To learn more about the Spotify direct listing, consider reading the articles below.

https://www.ft.com/content/60ac293c-e... (How Spotify’s offering could “bite” banker bonuses)

http://fortune.com/2017/07/31/spotify... (How a direct listing works and what Spotify has announced publicly about it)

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For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.

http://seekingalpha.com/author/robert...