| dc.description.abstract | This study aims to explore the direct listing model and its potential applicability in Taiwan. In recent years, direct listing has emerged as a novel entry method into the public markets, attracting global attention. Compared to the traditional initial public offering (IPO), direct listing can significantly reduce the costs and duration of going public while enhancing the liquidity of stocks. Moreover, by not involving underwriters, it grants companies greater flexibility and autonomy. However, the potential issues associated with direct listings cannot be overlooked. Firstly, a direct listing lacks underwriters serving as market gatekeepers. Instead, financial advisors assume the role of assisting the company in going public and setting the reference price. After underwriters are downgraded to financial advisors, it remains to be seen whether it is still appropriate for them to bear the legal responsibility for False Prospectus Statements. Secondly, the lack of underwriter involvement may lead to insufficient due diligence on the enterprise and the absence of price stabilization mechanisms by underwriters after listing. Consequently, investors may face increased market volatility and other issues related to inadequate protection. This paper provides a detailed comparison between direct listings, traditional IPOs, and Special Purpose Acquisition Companies (SPACs), and includes case studies on the practical application of direct listings in the United States. In addition, although direct listing has achieved certain success in markets such as the United States, observing Taiwan′s unique market environment, family business type and regulatory system, the implementation of direct listing may have different effects in Taiwan. Therefore, in conclusion, this article believes that Taiwan A direct listing system should still be introduced and diversified listing channels should be added to facilitate the integration of our country′s capital with international standards. Legally speaking, financial advisors should be held responsible for False Prospectus Statements, but the scope of liability should be limited to the “reference price” Establish a basis to balance investor protection and the rights and responsibilities of financial advisors in direct listings, and cooperate with relevant measures, such as strengthening the disclosure of performance forecast basis, valuation calculation basis, voluntary implementation of lock-up period agreement, improving investor education, and clear confirmation the legal responsibilities of financial advisors and the linking of the interests of financial advisors with the company′s future listing performance, in order to contain and strengthen their responsible attitude, etc., as supporting measures for the implementation of this system, to ensure that the interests of investors can be protected while promoting market stability and healthy development. This article provides an overview of the system and relevant suggestions to promote the development of a more efficient and transparent open market financing mechanism. | en_US |