InvestorQ : How to buy IPO stock in Grey market ?? Who is eligible to buy ? Is it legal to buy the stock in grey market before listing ? Please explain !!
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IPO

How to buy IPO stock in Grey market ?? Who is eligible to buy ? Is it legal to buy the stock in grey market before listing ? Please explain !!

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priya Shah answered.
3 months ago
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Grey market is a place where shares of a company are bought and sold outside the official trading channels. Generally, the companies looking to launch their IPOs first decide to test the water in the grey market to check the demand of their IPO and sometimes to decide the valuation of the IPO. As the allocation algorithm treats each retail application equally, buying IPO applications on the grey market will automatically increase the chances of share allotment.

Since the Grey market is over the top market, detailed information is not available and there are no official intermediaries available who can help you in buying or selling shares. If you are willing to buy or sell shares in the market, you will have to look for a local dealer who could help you find buyers or sellers.
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