Grey Market
Definition of 'Grey Market'1. A market where a product is bought and sold outside of the manufacturer's authorized trading channels.2. The unofficial trading of a company's shares, usually before they are issued in an initial public offering (IPO). |
|
Investopedia explains 'Grey Market'1. For example, if a store owner is an unauthorized dealer of a certain high-end electronics brand, the product is considered to be sold in the grey market. If the product is illegal, it would be selling on the "black market".2. The grey market is an over-the-counter market where dealers may execute orders for preferred customers as well as provide support for a new issue before it is actually issued. This activity allows underwriters and the issuer to determine demand and price the securities accordingly before the IPO. |
Related Definitions
Articles Of Interest
-
How do I identify a gray market?
The term "gray market" refers to the market for the purchase and sale of uncirculated securities that will be offered at a future date. An issuer may execute a customer order prior to the initial ... -
IPO Basics Tutorial
What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop. -
Pinnacle Foods Gains 11% In IPO Debut--Now What?
Blackstone Group brought Pinnacle Foods (NYSE:PF) to market March 28. The maker of Vlasic pickles and other well known brands saw its stock jump more than 12% in its first day of trading. Should ... -
Investing In IPO ETFs
Learn the history, rules and risks of investing in IPO exchange-traded funds. -
Buy or Sell: Norwegian Cruise Line's IPO Up 31% On First Day Of Trading
NCLH gained 31% on November 17, its first day of trading. Does this mean it is a buy, sell or hold? -
Reverse Takeover
Learn more about this type of takeover and how companies use it to avoid IPOs. -
The Fundamental Mechanics Of Investing
Here's a story that demonstrates why stocks and bonds were created and how they are valued. -
How are share prices set?
When a company goes public though an initial public offering (IPO), an investment bank evaluates the company's current and projected performance and health to determine the value of the IPO for ... -
Cashing In On The Venture Capital Cycle
Find out how VC firms make the market go round, and round and round. -
Spotting Sharks Among Penny Stocks
To protect yourself from an attack, don't swim in this ocean.
Free Annual Reports