By investing in the grey market, you are betting on a company's potential market cap ahead of its initial public offering (IPO). The price of a grey market forecasts the company's total market capitalisation at the end of its first trading day.

If you believe the company's estimated value is over- or under-priced, a grey market allows you to profit from this disparity before the shares are publicly traded on the stock exchange.

A grey market, also known as a parallel market, refers to the trade of goods through distribution channels that are legal but unofficial, unauthorized, or unintended by the original manufacturer. Unlike black markets, which involve illegal goods and services, grey markets deal with legitimate products sold through unauthorized resellers. Common in electronics, pharmaceuticals, and luxury goods, grey market items are typically sold at lower prices than through official channels due to differences in pricing strategies, regional market conditions, or currency fluctuations. While grey markets can offer consumers lower prices and access to hard-to-find products, they often come with risks such as voided warranties, lack of customer support, and concerns about product authenticity and quality.

A grey market is an unofficial marketplace where goods or securities are traded outside authorised channels but are not illegal. In finance, it refers to the buying and selling of shares before they are officially listed on a stock exchange. In consumer goods, it involves importing genuine products from other regions without the manufacturer’s permission. Grey markets often arise due to price differences between countries or limited product availability. While buyers may get lower prices, these transactions usually lack official warranties or after-sales support. Regulators monitor grey market activities because they can disrupt pricing structures, affect brand reputation, and create challenges for authorised dealers trying to compete with unapproved, lower-cost imports or pre-listing trades.