How do direct listings, SPAC IPOs and extended-hours orders differ?
Our answer
Identify the security and listing method before comparing access. A traditional IPO offer, a direct listing and a SPAC transaction can have different documents, structures and trading arrangements. Ask whether your cash account supports the instrument and the order session you intend to use.
Extended hours
Check the broker’s trading window, supported order types and execution venue. Lower liquidity and wider spreads can make the displayed price less reliable.
Read the security description
For a SPAC, check whether the quote is for a share, a unit or a warrant and read the terms for that instrument. A direct listing may open with a different process from an underwritten IPO.