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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The impact of international gray marketing on consumers and firms.
In summary, the impact of gray marketing on agency goods is not as serious as manufacturers argue, and as has been shown, in some situations, all of the difficulties can be overcome.
International gray marketing or free trade play a significant role in bringing products to discount stores and ultimately to consumers at low prices.
The results show that the value of gray marketing is not as serious as manufacturers have argued.
(1.) Gray marketing can arise in two ways: either through domestic or international marketing.
"Gray Marketing of Pharmaceuticals," Journal of Health Care Marketing, 15, 3, 1995, p.
"Gray Marketing: A Legal Review and Public Policy Perspective," Journal of Public Policy & Marketing, 9, 2, 1990, pp.
In the Pacific Rim, a variety of rubber, plastic, and metal industries were reported to be highly vulnerable to gray marketing. It is interesting to note that these industries were identified as problematic only in the Pacific Rim and not in any other trade region, despite the fact that they are exported to each.
Gray marketing occurs in almost every industry and in almost every market.
Companies can identify specific product attributes that may be contributing to gray marketing in local markets.