Experts discuss reliability of Grey Market Premium for IPOs

What happened

Experts noted that Grey Market Premium (GMP) is not always a reliable indicator of how a stock will perform on its listing day.
Recent IPOs showed differences between GMP expectations and actual market performance.

Financial terms from this story, in everyday words.

Grey Market Premium: An unofficial price at which shares are traded before they are officially listed on an exchange.

Original source

The Economic Times

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