Gray market

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Gray market

Describes the sale of securities that have not officially been issued to firms other than the underwriting syndicate. This type of market serves as a good indicator of demand for a new issue in the public market.

Gray Market

Trade using unofficial and unregulated, but still legal, means. In securities, a gray market typically refers to trade in bonds or stocks not yet issued. These sales are contingent upon the issuance actually taking place, and are sometimes considered benchmarks for how successful the issuance will be. Another example of a gray market is the pharmaceuticals industry, in which buyers in different countries sometimes pay very different amounts. Buyers in the more expensive country may travel to the other country to buy their medicines, creating a gray market.
References in periodicals archive ?
Gray marketing is the sale of new, genuine goods and products outside authorized distribution channels without the consent or knowledge of the manufacturer.
Incorporated in 2001, AGMA's mission is to mitigate gray marketing fraud and counterfeiting of technology products around the globe.
HP is a founding member of the Alliance for Gray Market and Counterfeit Abatement, a global association formed in September 2001 composed of leading technology companies committed to addressing the global impact of the gray marketing and counterfeiting of technology products.
As president of an organization which brings together global leaders like HP, Nortel, Microsoft, 3Com, Sun Microsystems, Seagate, and Cisco, Manchi plans to encourage member companies to increase market awareness of the perils associated with gray marketing and counterfeiting to manufacturers, customers, and society.