Gray Market

A gray market means an unofficial market for financial securities. It happens when a new stock is bought or sold before official trading begins. As you understand it trades stocks that will be public in the very near future. The gray market is an unofficial one but is not illegal.

Investors trade stocks without the involvement of the issuing company. Let’s say if you go to buy Apple stock, you are dealing only with another investor who owns shares in Apple. Apple is not part of the transaction directly.

The secondary market can be devided into
two specialized categories:

Main issues:

It refers to unofficial, over the counter (OTC) transactions in a security.
Typical OTC trading do not support security trading on an exchange, the gray market trades in stocks that for any king of reason has been suspended from
official trading, or the stock has not gone public yet.
It also refers to imported products, which are sold in alternatives retail chains.
It is important to emphasize that it is not illegal, but it is unofficial market, which increases its riskiness.

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Why traders might be interested in gray market stocks?

Traders show interest in grey market stocks because it can be a smart move of taking advantages of company’s stock price volatility before it is being published.

Even studying the behavior of the stock during the time it is part of gray market, traders might be able to understand the tendency of the asset once it is public.

Twitter IPO grey market
Let’s talk about Twitter, back in November 2013 when it was IPO. During the time Twitter were trading in gray market, a large number of investors showed their
interest in its stocks.

The day before the IPO, the speculators were talking about a value of $43.6/share by the end of the first trading day, and a total market capitalization about
$23.75 billion. That was obviously higher compared to the market capitalization the company had calculated for itself, which was about $18 billion.

All expected, a day later, Twitter shares were closed at $44.90/share and the initial market capitalization of approximately $31 billion.

Payment Methods

You can fund your account with Dakken Group with whatever Visa Card you own. We accept Visa Debit, Visa Credit, business cards, except of prepaid ones.

Mastercard is also one of our best collaborators. You can open your account with Master Debit and Credit. There are no additional charges for deposits or withdrawal with Master cards, even though during other payments you are charged for the service.

Maestro is a quick and easy way to get your account ready to trade. It is a fast funding method. Maestro Debit cards are accepted, excluding prepaid ones.

Skrill is an effective way to transfer money or pay different purchases. So, it is a good way to fund your trading account with Dakken Group from anywhere with just email address and password. Deposits via Skrill will be returned to the originating bank account that funded the Skrill account. Supporting documentation will be required in this instance. Skrill also does not support funding through prepaid cards.

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Cryptocurrency Payment Methods

When depositing funds, Dakken Group do not apply any charges but your own bank or card provider may apply their own charges.

*Card Payments can be deposited at anytime but in certain circumstances beyond Dakken Group control some payments may only be applied between the deposit processing times that apply to Bank transfer deposits. Minimum deposit and withdrawal amounts of £65/€90/$100 apply unless the trading account is being closed. Please note that in certain circumstances Dakken Group may require additional supporting documentation before funds can be applied or withdrawn from your trading account.

**Minimum withdrawal amount of £65/€90/$100 apply unless the trading account is being closed.

Please allow 3-5 working days for all withdrawals (including international transfers and card refunds). For more information please contact our Client Management Support.

Please note that in accordance with UK Money Laundering Regulations Dakken Group is unable to accept third party or prepaid card payments and the name of the deposit or via the above methods must be consistent with the ADSS account name.

Dakken Group will not accept any remittance which is considered to be a third party or pre-paid card payment. In addition, please note that Dakken Group applies a return to source withdrawal policy.

Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk and may not be suitable for all investors. Past performance of an investment is no guide to its performance in the future. Investments, or income from them, can go down as well as up. You may not necessarily get back the amount you invested.

All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument. Please, ensure you understand all risks and seeking dependent advice if necessary.

This website is owned and operated by Clandestiny Group LLC, Company registration number: 1342 LLC 2021 and registered address First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St Vincent and the Grenadines.