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SEC approves NYSE proposal to allow IPO alternative
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The Securities and Exchange Commission said on Wednesday it approved a proposal by the New York Stock Exchange to allow companies to raise capital through direct listings.
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The move is a major breakthrough for the exchange operator that has been pushing for an alternative to traditional initial public offerings (IPOs) for companies to raise money.
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It will widen the options available to private companies that are looking to go public, but are wary of the role played by investment banks in the IPO process.
"We are not trying to displace the IPO. We are trying to create more options for companies and investors seeking to tap into the public markets," NYSE Vice Chairman and Chief Commercial Officer John Tuttle said in a telephone interview.