Grey Market
The grey market is an unofficial, marketplace where unlisted or soon-to-be-listed securities are bought and sold. It operates outside of formal exchanges and lacks the regulatory oversight and structure of official stock markets. The grey market allows investors to trade shares before they are officially listed. Underwriters of an IPO often analyze the grey market premium (the price difference between the expected listing price and the grey market price) to gauge investor demand for a stock before it becomes publicly available.
Related Terms
EBITDA MARGIN
The EBITDA margin is a ratio of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)...
Ex-Dividend Date
The ex-dividend date is the trading day when a stock’s new buyer no longer qualifies...
Doji Pattern
A Doji is a candlestick pattern that occurs when the open and close prices of...
Interest Coverage Ratio
The Interest Coverage Ratio (ICR) measures a company's ability to pay interest on its outstanding...
Equilibrium Price
Equilibrium price occurs when supply matches demand perfectly, balancing the market. At this point, buyers...
Basis Of Allotment
The basis of allotment defines the criteria for distributing shares to investors, typically during IPOs....
