Here's why Spotify is bypassing the normal IPO process — and why more companies don't do it

Spotify on Wednesday filed an F-1 prospectus for its so-called "direct listing." It follows the company's confidential filing of initial public offering documents at the end of December. Spotify is perfectly positioned to effectively use a direct listing due to its unique combination of name-brand recognition and an already-massive private market valuation. Just because Spotify is doing a direct listing doesn't mean other companies should follow suit. It's a risky process, and one not built...