Whats Grey market??

Grey market is actually not a grey coloured market but it is something like a smuggling business wherein people smuggle expensive goods without actually paying the tax on them ,the goods from the grey market don't even have any warranty.|||Thanx buddy

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|||The grey market (or gray market) usually refers to the flow of new goods through distribution channels other than those authorized or intended by the manufacturer or producer. The grey market may also refer to the 50-and-over age group in marketing terms.





Grey market goods are not generally illegal. Instead, they are being sold outside of normal distribution channels by companies which may have no relationship with the producer of the goods. Frequently this form of parallel import occurs when the price of an item is significantly higher in one country than another. This situation commonly occurs with cigarettes and electronic equipment such as cameras. Entrepreneurs buy the product where it is available cheaply, often at retail but sometimes at wholesale, import it legally to the target market and sell it at a price which provides a profit but which is below the normal market price there. This practice is also known as arbitrage.





International efforts to promote free trade, including reduced tariffs and harmonized national standards, facilitate the grey market where manufacturers attempt to preserve highly disparate pricing.





Because of the nature of grey markets, it is difficult or impossible to track the precise numbers of grey market sales.





On securities markets, grey market has a different meaning. It refers to the buying and selling of securities to be issued in the future and, therefore not yet circulating. This typically occurs some days before an auction of government bonds or bills and that trading is subject to the effective issue of those securities. Sometimes this is taken as a forecast of the prices that markets expect for future issues.