How is GREY market premium calculated?
Grey market premium is nothing but the price at which the shares are being traded in the grey market.
For instance, let’s assume the issue price for stock X is Rs 200.
If the grey market premium is Rs 400, it means that people are ready to buy the shares of company X for Rs 600; (i.e.
What is gray market premium?
Grey market premium (GPM) is a premium amount at which grey market IPO shares are traded before they get listed in the stock exchange. In simple words, the stock of the company that came up with the IPO bought and sold outside the stock market. . The GPM reflects how the IPO might react on a listing day.
What is GREY market in share?
A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins. … The gray market is an unofficial one but is not illegal.
How do I buy shares in the GREY market?
As it’s over the counter market, there are no official people or business you can approach for IPO Grey Market trading. If you are interested in buying or selling IPO stocks in Grey Market, you have to find a local dealer who can find buyers or sellers for you.
What does gray market mean?
A grey market is a market in which goods have been manufactured by or with the consent of the brand owner but are sold outside of the brand owner’s approved distribution channels—an activity that can be perfectly legal.
What is gray market price?
Grey market premium (or grey market price) is a premium amount in rupees at which IPO shares are being traded in Grey Market before they get listed in stock exchange. … They tell the price either at which buyers are willing to buy shares or the price at which sellers are willing to sell their IPO shares.