Grey Market

Glossary

Banking

Grey Market

A grey market in equities operates between the time a company closes its IPO (cf.) and the time the shares are admitted to official trading on the stock exchange. In the bond market, the grey market opens once a new issue has been priced and lasts until the time the bond hits its settlement date a few days later. Grey market trading is conducted over-the-counter by investment bank dealers or inter-dealer brokers.

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