gray market

noun

|Updated on: 19 Jul 2018

Definition of gray market

: a market employing irregular but not illegal methods; especially : a market that legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer

Recent Examples of gray market from the Web

Bots can be readily purchased on a gray market of websites.

— craig timberg and elizabeth dwoskin, chicagotribune.com, "Twitter is sweeping out fake accounts like never before, putting user growth at risk," 7 July 2018
The old woman prescribed dried rattlesnake rattles, somehow procured in the gray markets where taxes aren’t paid and questions not asked.

— mark davis, ajc, "Personal Journeys: A class by herself," 8 June 2018
This statement seems to disregard official services like the Steam Community Market and gray market third-party sites that let players trade in-game items for cash and vice versa.

— kyle orland, Ars Technica, "Trade group prez: Loot box regulation “challenges our freedom to innovate”," 25 May 2018
Black and gray market sales are available to anyone with an internet connection.

— brad branan, sacbee, "California not meeting revenue projections for commercial cannabis, analyst says | The Sacramento Bee," 9 Apr. 2018
Law enforcement oversight has slackened for cannabis, which has put entrepreneurs in a position to sell via this gray market — or even the profitable black market across state lines.

— phil mccausland, NBC News, "Stymied legalization process for marijuana opens door to gray market," 4 Feb. 2018
The low sales figures come as the cannabis industry has been complaining about how high taxes and local-government bans are driving consumers to the black and gray markets.

— brad branan, sacbee, "California not meeting revenue projections for commercial cannabis, analyst says | The Sacramento Bee," 9 Apr. 2018
The lawbreaking that most perplexes European leaders is the large gray market, composed of otherwise law-abiding citizens who work around suffocating taxes and labor regulations.

— joseph c. sternberg, WSJ, "Consumers Make Their Own Case Against Abolishing Cash," 15 Mar. 2018
In the absence of a decision, a bustling gray market has developed.

— phil mccausland, NBC News, "Stymied legalization process for marijuana opens door to gray market," 4 Feb. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'gray market.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of gray market

1934

in the meaning defined above

See Words from the same year

NEW! Time Traveler

Financial Definition of GRAY MARKET

gray market

noun

What It Is

In the investing world, a gray market exists when people begin trading shares that have not been issued yet. In the business world, a gray market is the novel but not always illegal process of obtaining goods or services.

How It Works

Let's say Company XYZ is going public on Tuesday. John Doe subscribed to the offering and will have about 200,000 shares. Jane Smith is anxious to get her hands on some of the shares but is not a subscriber. She calls John and offers to buy some shares from him as soon as they start trading. He agrees. Six other fund managers also call John and try to get some of his shares. John, Jane, and the other fund managers are creating a gray market for the shares.

Why It Matters

The existence of gray markets signals strong demand for a good, service or security. In the business world, products are sometimes less expensive in the gray market, though they also may be counterfeit, cheaply made, or infringing on a trademark.

Source: Investing Answers