<h1>Grey Market in IPOs: Unregulated Trading of Shares Before Listing, Risks Involved Despite Potential Gains.</h1> The grey market in Initial Public Offerings (IPOs) operates as an informal, unregulated market where shares are traded based on trust prior to their official listing on stock exchanges. This market involves trading IPO shares or applications at a premium, known as the Grey Market Premium (GMP), which reflects the expected performance of the shares post-listing. Transactions in this market are private and involve risks, as they are not overseen by regulatory bodies like the Securities Exchange Board of India. While GMP can indicate potential IPO success, it is not a guaranteed measure and involves significant risk.