grey market

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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.

grey market

an ‘unofficial’ market in newly issued shares prior to their being formally listed and traded on the STOCK EXCHANGE. See SHARE ISSUE.
References in periodicals archive ?
Gray markets sometimes develop when regulations restrict or prohibit certain types of product modifications or enhancements in particular markets (such as with chemical products or emission control systems).
There is no question that increasing communications between a manufacturer and its distributors can enhance the overall relationship and help combat gray markets.
AGMA is driving a strategic initiative comprised of leading high technology companies committed to addressing the global impact of the gray market and counterfeiting of goods on the technology industry.
Our goal is to educate the industry about the gray market and its impact and develop industry best practices to mitigate the counterfeiting of branded technology products in order to reduce the potential harm counterfeits cause to customers, authorized distribution partners and the high tech industry as a whole," said Tidd.
This is putting pressure on the Obama administration and the FDA to do more about drug shortages and the gray markets.
But it's possible that drug makers could act before the FDA in tamping down on the gray markets, motivated by both political and economic interests.
In addition to problems stemming from inability to support products sold in gray markets, another problem stems from the type of product information (repackaging) that occurs in the resale of the good, which can affect the consumers' perception of the branded product [Chaudhry and Walsh 1995].
The note then focuses on the domestic gray market by considering our country's current drug shortage and the ways in which gray good pharmaceuticals' presence heightens its implications for health and safety.
In 2006, Motorola handsets sold to an Australian telco at a steep discount for a promotion were acquired by a gray market operator, who sold them in Asia.
Besides, the consumer has perceived risks of trading in the gray market.
The European Union's revoking of border inspections and non-tariff barriers has facilitated the growth of gray markets in the EU arena.
Premier collected 1,745 unsolicited gray market sales offers in April-May 2011.