gray marketgray market
a market, as for imported goods, operating outside the authorized system of distribution
Origin of gray marketgray (adjective) + (black) market
- The business of buying or selling goods, such as imports, at prices below those set by an official regulatory agency or at prices below those prevailing in an established market.
- The business of buying or selling securities that have not yet been officially issued and are not available through established brokers.
Origin of gray marketgray 1 (black) market
(plural gray markets)
- Alternative spelling of grey market.
gray market - Investment & Finance Definition
- The sale of stocks or bonds by a bank that isn’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.
- The sale of products by distributors that haven’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.