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gray market definition - finance
  1. The sale of stocks or bonds by a bank that isnÂ’t a member of the underwriting syndicate. If sales in the gray market are strong, it is a good indicator of strong demand for the new stock or bond issue.
  2. The sale of products by distributors that havenÂ’t been authorized by the manufacturer. Often these goods are sold at discounted prices. However, if there is any problem with the product, the manufacturer may refuse to honor its warranty.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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