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 ?
The author therefore discusses the issue of whether gray marketing induces unfair competition.
The question arises, does gray marketing influence trade order causing unfair competition?
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.
Results from our survey suggest that gray marketing is not restricted to lesser developed countries or volatile markets.
And while Mexico was an area of frequent violations, one exporter noted that its stainless steel rods and wires were constantly affected by gray marketing in Canada, a market that many managers do not associate with such a threat.
In the Pacific Rim, a variety of rubber, plastic, and metal industries were reported to be highly vulnerable to gray marketing.
Gray marketing occurs in almost every industry and in almost every market.
Incorporated in 2001, AGMA's mission is to mitigate the gray marketing and counterfeiting of technology products around the globe.