| a market operating within the law but charging prices substantially below list prices or those fixed by an official agency. |
| gray market n. The business of buying or selling goods, such as imports, at prices below those set by an official regulatory agency. [gray1 + (black) market.] |
Gray Market
1. An unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange.
2. The sale or import of goods by unauthorized dealers.
Investopedia Commentary
1. Trading in gray or "when-issued" markets can provide a good indication of demand for a new issue.
In some parts of the world "gray" is spelled "grey".
2. In this case, items that were manufactured abroad and imported into a country without the consent of the trademark holder would be a gray market good.
Related Links
The Murky Waters Of The IPO Market
Markets Demystified
Brokerage Functions: Underwriting And Agency Roles
Getting to Know Stock Exchanges
Uncovering The Securities Firm
See also: Dealer, Exchange, Initial Public Offering - IPO, Issued Shares, Primary Market, Public Offering Price - POP, Secondary Market, Underwriting
Also spelled: grey market
