A Gray Market Is

question 13

Multiple Choice

A gray market is

• A) the segment of products specifically designed for the need of older buyers.
• B) a once active and powerful market that is rapidly becoming the bottom of the barrel.
• C) a situation where products are sold through unauthorized channels of distribution.
• D) a pricing structure that is based upon haggling that is considered acceptable in some countries but not others.
• E) the willingness of one party to accept gifts in exchange for better prices or price allowances.

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Definitions:

Minimum Tick Size

The smallest allowable increment by which the price of a financial instrument can move on the trading platform.

Treasury Bond Market

The marketplace where U.S. government bonds with maturities greater than ten years are issued and traded.

Spread

The difference between the purchase price and the sale price of a security, or the difference between the bid and ask prices.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and other short-term liabilities.