InvestorQ : What is the grey market and is it also part of the IPO market?
Lavanya Subramanian made post

What is the grey market and is it also part of the IPO market?

Answer
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Archita Jajjoo answered.
1 year ago


Remember, grey market is not an official market but an unofficial market. The grey market meaning is that of an unofficial market while the IPO market is an official and recognized medium of raising funds in the market within SEBI guidelines. The IPO market and the IPO grey market do not have any official relationship whatsoever. You know what IPO in share market is but equally important is the grey market in IPOs. Unlike what a lot of people believe, the grey market is not illegal and it is just an informal method of arriving at a likely price for the stock. However, it does offer intelligent cues for the IPO price when it gets listed allowing traders to position accordingly.