The benefits of direct listing over IPO are:

I. lower costs
II. faster of going public
III. increase volatility of share prices

Correct Answer: I and II

Direct listing helps companies avoid hefty fees paid to investment banks. It also helps them avoid the indirect cost of selling the stocks at a discount. As no underwriter is involved, the speed of going public is much faster.

In a direct listing the price of the stock depends solely on supply and demand. This increases volatility, as the range in which the stock is traded is less predictable.