Shadow Market

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Dictionary Says

Definition of 'Shadow Market'

An unregulated private market in which investors can purchase shares in companies that are not currently publicly traded. Shadow markets in stocks give investors an opportunity to invest in companies prior to their initial public offerings (IPO). However, the SEC requires investors to have a net worth greater than $1 million in order to participate in this nontransparent market. These people are what the SEC refers to as "accredited investors".
Investopedia Says

Investopedia explains 'Shadow Market'

The main benefit of using the shadow market to purchase shares is that the accredited investor can get exposure to certain companies much earlier than most other investors. This greatly increases the potential profit for the investor if the stock goes public and demand from average investors drives the stock price up. Some of the downsides of the shadow market include lack of liquidity, lack of disclosure from the company, and a greater degree of uncertainty and risk.
Search results for

'Shadow Market'

  • Using Candles To Understand Market Behavior

    http://www.investopedia.com/video/play/trading-candle-chart
    ... market behavior. This includes how you can use the "shadow" to see whether
    the buyers or sellers are dominating the market action. ...

  • The Rise And Fall Of The Shadow Banking System

    http://www.investopedia.com/articles/economics/10/shadow-banking-system.asp
    ... The shadow banking system enabled such a system to flourish because many of these
    economic anomalies remained hidden in the unregulated market. ...

  • The New World Of Emerging Market Currencies

    http://www.investopedia.com/articles/forex/07/emergingmarketcurrencies.asp
    ... In the shadow of more industrialized economies, interest in emerging market
    assets has increased in recent years. Although these ...

  • 5 Reasons To Fear The Stock Market - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/5-Reasons-To-Fear-The-Stock-Market.aspx
    ... Others will argue that the market is up drastically because the Great Recession ...
    (For additional reading, see The Rise And Fall Of The Shadow Banking System.). ...

  • Three ETFs Ready To Rebound

    http://stocks.investopedia.com/stock-analysis/2008/Three_ETFs_Ready_To_Rebound_IHF_NLR_EWD.aspx
    ... In the shadow of Tuesday's market disruption, I have to wonder if the last
    two months worth of rally is getting ready to cool off. ...

  • Is The Housing Bubble Over? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Is-The-Housing-Bubble-Over.aspx
    ... the market, so the fictional demand has evaporated; CoreLogic estimates the shadow
    inventory of bank-owned homes that have not been put on the market at 1.7 ...

  • KB Home Still In A Rough Neighborhood

    http://stocks.investopedia.com/stock-analysis/2010/KB-Home-Still-In-A-Rough-Neighborhood-KBH-LEN-PHM-TOL-DHI0329.aspx
    ... This is exacerbated by the shadow of foreclosures which haven't yet reached the
    pipeline to be counted.With the job market still in flux, estimates are that it ...

  • The Banking System: Non-Bank Financial Institutions | Investopedia

    http://www.investopedia.com/university/banking-system/banking-system11.asp
    ... environment. The shadow banking system funneled a great deal of money into the
    US residential mortgage market during the bubble. Insurance ...

  • Homebuilder Stock Bubble Popped By Reality

    http://stocks.investopedia.com/stock-analysis/2009/Homebuilder-Stock-Bubble-Popped-By-Reality-DHI-PHM-KBH-TOL-LEN1006.aspx
    ... this so-called "shadow inventory" could total between 2 and 7 million units, each
    of which will crimp demand for new houses as they trickle into the market. ...

  • Understanding Liquidity Risk

    http://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp
    ... crisis included a run on the shadow (non-depository) banking system - providers
    of short-term financing, notably in the repo market - systematically withdrew ...

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