The company filed to go public in February in a move that experts suggest could value them at $20bn-$25bn. "There's really no difference between a direct listing and Day 181 of a lockup". Direct listings are typically used for smaller launches, such as for a company emerging from bankruptcy or a public company's spinoff listing shares. According to Keith Bliss of Cuttone and Company, Morgan Stanley has been road showing the company for three weeks.
Spotify's debut came on the heels of a steep USA equity selloff led by tech stocks, although the market had found firmer footing at midday on Tuesday. Spotify declined to comment.
That is certainly likely to be the case in shares of this business. But it could mean trading in the shares will be exceptionally volatile as a result.
The only major investor still is subject to a lockup period is the Chinese social media giant Tencent, which owns a stake of more than 9%. Employees and investors do not face the same restrictions on when they can sell their stock, for example.
The exchange itself, however, didn't have things quite right.
They could do this a number of ways. Then underwriters hammer out how many shares investors want and at what price.
Taylor Swift, for example, recently made an alternate video for her song "Delicate" and offered it exclusively on Spotify.
But people who know McCarthy say he does not care about the broader implications of his plan - he isn't motivated by some ideological crusade to stick it to Wall Street, nor by some high-minded attempt to chart a new future for the technology sector. This could take many forms, such as paying artists less, having more ads in the free version, or even raising prices.
Based upon those orders, an opening price will be established on a basis of where the buy orders can be matched with sell orders at one price. That could help manage volatility and generate sufficient supply to ward off a liquidity squeeze, in which a shortage of shares runs up their price. This ensures that there is stability in the market when the shares begin trading.
The tech sector is also watching Spotify to see how large, privately held companies are valued.
"We did make a little mistake earlier today", said Kristen Kaus, a spokeswoman for the New York Stock Exchange.
Telia acquired a 1.4% stake in Spotify in June 2015 when it invested $115m in the company.