<human>:  What is the difference between an IPO and a direct listing?
<bot>: An Initial Public Offering (IPO) is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. The aim of an IPO is to raise capital for the company. A direct listing is similar but involves a company's existing shareholders selling their shares directly to the public. The primary difference between an IPO and a direct listing is that an IPO requires a new offering of shares which includes the additional issuance of shares, while in a direct listing, only existing shares are traded.