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What Trades on the Gray Market? Spell it with an “ e” or an “ a” or call it by its other name - - gray sheets – the gray market is unlike other exchanges. Stocks generally end up as what is commonly called Grey Sheet stocks after an SEC suspension. Technically, it is the Grey Market.
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Market Makers are warned, pursuant to 15c 211 not to publish a quote for the security without reviewing its information statement/ clarified information statement. Gray Sheets are commonly associated with Initial public offering ( IPO) stocks or start up companies or spin- off companies. Actually most Gray Sheet stocks are not IPO' s.