Definition of Gray market:
Genuine branded goods (called gray goods) sold outside of an authorized sales-territory (or by non-authorized dealers in an authorized territory) at prices lower than being charged in authorized sales territories (or by authorized dealers).
A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. The gray market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market (i.e., it trades securities that will be offered in the very near future). The gray market is an unofficial one but is not illegal.
The term “gray market” also refers to the import and sale of goods by unauthorized dealers; in this instance as well, such activity is unofficial but not illegal.
An unofficial market or trade in something, especially unissued shares or controlled or scarce goods.
Market comprising of consumer over the age of 60.
How to use Gray market in a sentence?
- The discounting of bonds in the gray market.
- When you are dealing int he gray market you need to make sure that you have a good relationship with the other party.
- The gray market was better for us because it was cheaper and that made us all save a lot more money for other stuff.
- Most of the products advertised on National Public Radio (NPR) can be classified as gray market goods, since they are targeted at NPRs older demographic.
- The gray market also refers to products, often imports, that are sold through alternative retail channels.
- Unlike typical OTC trading where securities never trade on an exchange, the gray market trades in securities that have been suspended from official trading, or which have not yet begun official trading on an exchange.
- In either case, while not illegal, the unofficial status of the gray market increases its riskiness.
- The gray market for financial securities refers to unofficial, over-the-counter (OTC) transactions in a security.
Meaning of Gray market & Gray market Definition