What is grey marketing?

Wednesday, July 30th, 2008 @ 3:14 am | What

Grey marketing is nothing to do with the neither Grey color nor Grey is the name of a commodity. Ah yes, the word commodity reminds me to tell you that Grey marketing is something to do with the stock market.

Yes, grey marketing is absolutely legal but it is the trading transaction done through unofficial and unauthorized distribution channels

The grey market of goods is to import and sell products through market channels which are not authorized by the manufacturers. It occurs when the prices of a product differs significantly in different countries.

The grey market of securities markets and IPO (Initial Public Offer) is to buy and sell the shares to be allotted in the future. Cities like Ahmedabad, Kolkata and Rajkot are the most active centers for the IPO (initial public offerings) grey market.

Once the trading is done in the grey market at a stipulated price, the seller must deliver the sold number of shares to the buyer on the day of listing to honor the commitment.

Courtesy: Times of India, Wikipedia and Flickr.

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