What's going on?

Roblox isn�t just keeping the kids entertained: the gaming platform listed on the stock market on Wednesday, and excitable investors couldn�t wait to start playing (tweet this).

What does this mean?

Roblox was supposed to go public last year, but the company hit pause after Airbnb and DoorDash�s stock prices jumped following their initial public offerings (IPOs), suggesting they�d sold their shares too cheaply. Then, in January, the company announced it�d instead let investors themselves set its share price via a �direct listing�. So when Roblox debuted on the stock market on Wednesday, investors initially priced its shares at just under $70 apiece � much higher than the so-called �reference price� of $45, and potentially vindicating the company�s decision.

Why should I care?

For markets: Direct listings might not work out for everyone.

In an IPO, it�s banks that set the starting price of a stock. If investors think that price is too low, they�ll pile in and cause an early � and nowadays much-expected � spike in the share price. A direct listing, meanwhile, allows investors to make their own decisions about the price they�re willing to pay up front, which typically means a smaller day-one rise (if any at all). That could work against Coinbase when its direct listing arrives, mind you: drama-hungry cryptocurrency investors might be hoping for more fanfare around one of the leading crypto exchanges.

For markets: � but they�re only going to get more popular.

Direct listings give retail investors a way to buy newly listed shares at the same time as institutional heavy-hitters, and there might be a lot more to come. See, companies haven�t historically been allowed to raise money from a direct listing, forcing those that wanted to shore up their bank balances to opt for an IPO. But that rule�s just changed: companies can now list directly and raise money � and if Roblox�s success is anything to go by, plenty more will.