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 ?
23, Reynolds Tobacco filed a similar gray market suit against four named defendants and an unspecified number of as-yet-unnamed defendants in Illinois.
Nick Tidd to Discuss the Impacts of Certain Sales Procedures and Compliance Issues on the IT Counterfeiting and Gray Markets
It is important to educate all employees to recognize the gray market issue and develop strategies in response.
In keeping with its charter to educate and offer best practices in fighting gray market fraud and counterfeit activity, AGMA sponsored a session on successful brand protection programs in other industries.
The new rules in Europe protect the rights of gray market dealers to buy cars for export.
Gray market cigarettes are a problem not only for consumers and manufacturers, but also for state governments, retailers and wholesalers, the company said.
This fact alone is evidence that gray market and counterfeiting are real issues that need immediate attention," said Nick Tidd, AGMA president.
The higher prices and rents extracted by the gray market represent revenue forgone by drug makers that, on the margin, could produce increased supply.
In this paper, the problem of a gray market is addressed in the context of a trademark owner's perspective in situations where the firm negatively reacts to the trade and limits the distribution of its goods through unauthorized channels.
The gray market is certainly an issue the legislature is going to address," Smith said.
A brand protection plan will also take into consideration steps for monitoring the flow of parallel imports or gray market goods.
The gray market includes counterfeit smartphones like iPhones, Samsung Galaxy series and BlackBerry devices sold for as low as Dh400.