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.