Key Concepts
Unlisted market
It is where shares of companies not listed on any stock exchange (like NSE or BSE) are bought and sold, usually through private deals, brokers, or online unlisted share platforms, often before the company goes for an IPO.
Grey Market Premium (GMP):
- It refers to the premium at which an Initial Public Offering (IPO) share is trading in the grey market before its official listing on the stock exchange.
- No SEBI regulation exists for the grey market, so it's based on informal trading.
How GMP Works?
- GMP = Grey Market Price - IPO Issue Price
- If an IPO is issued at ₹100 and its GMP is ₹50, it means the share is trading at ₹150 (100 + 50) in the grey market.
- A high GMP suggests strong demand, while a low or negative GMP indicates weak demand.
Website to buy unlisted market
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