Q. Grey market trading refers to:

[A] Trading of shares on stock exchanges after their official listing.

[B] Illegal trading of counterfeit shares in the securities market.

[C] Trading of commodities like gold and silver outside government-regulated markets.

[D] Unofficial and unregulated trading of shares before they are officially listed on a stock exchange.

Answer: D
Notes:

Explanation – The grey market operates outside the official channels of stock exchanges, allowing for the trading of shares before they are officially listed. This type of trading is unofficial and unregulated, meaning it doesn’t fall under the purview of standard market regulations. Despite its unofficial status, grey market trading is not considered illegal.

Source: AIR

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