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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

grey market

an ‘unofficial’ market in newly issued shares prior to their being formally listed and traded on the STOCK EXCHANGE. See SHARE ISSUE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
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.
This contractual, self-regulatory response to gray markets would ensure that ethical drugs in short supply are not price "churned" through the gray market distribution chain, but instead result in higher revenues for the manufacturers while ensuring the integrity and safety of the ethical drug supply chain and avoiding fallout from "price gouging" accusations against the gray markets.
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 arbitrage function of gray markets may thus have a direct, adverse impact on their earnings.
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.
A contractual approach to the gray market. International Review of Law and Economics, 19(1), 1-21.
Strategies to counter gray markets available to the product originators and their distributors may be classified as either reactive or proactive.
A number of retailers and retail trade associations, including Amazon.com, eBay, Target stores, and the Entertainment Merchants Association, also support Costco's position and focus on the global marketplace (including the gray market) for authentic copyrighted works.
In the NAFTA countries, gray markets were found in a wide variety of manufacturing industries (Table 1, Column 3).
Copyright was also a questionable legal issue in the gray market economy.
The Alliance for Gray Market and Counterfeit Abatement, an initiative composed of technology companies, reports that "over $40 billion in legitimate IT products move through the gray market channel each year, resulting in $5 billion in lost profits annually to IT manufacturers."
The gray market does not have to pay advertising expenses, but enjoys the effects of the promotion, therefore, a situation of unfair competition exists.