Analyzing Listed IPOs Based on Grey Market Premiums
In the journey from a Closed IPO to a Listed IPO, one of the most talked-about indicators is the Grey Market Premium (GMP). It’s often considered a quick barometer of how an IPO might perform on listing day. But how reliable is it for investors looking to make informed decisions? What is Grey Market Premium? Grey Market Premium refers to the unofficial price at which IPO shares are traded before they are officially listed on the stock exchange. This grey market is not regulated, and transactions are based on trust, typically among high-net-worth individuals and dealers. If an IPO has...