Trade as the issue
Trading in securities that are about to be listed on the stock exchange is referred to as trading on the fly or gray market . In this case, over-the-counter futures transactions are carried out, which are fulfilled and settled on the day of the initial listing: the buyer undertakes to take over the securities at a certain price when trading begins, and the seller undertakes to deliver them on these terms. If the stock exchange trading of the security does not take place, for example because of the cancellation of an IPO , the transaction becomes ineffective. Sellers can, for example, be existing shareholders or underwriters ; as are short sales possible.
Trading as it appears takes place at trading venues organized under private law. The prices determined in this way do not apply in Germany as "stock exchange prices" within the meaning of Section 24 of the Stock Exchange Act . They often serve as an indicator for the bidding process for a new security, i.e. for the success and the first exchange prices of an issue .
Trading on the fly is also called pre-trading . This term is ambiguous; it also stands for the morning trading before the stock exchange opens .
Individual evidence
- ↑ Trading as it appears in the FAZ Börsenlexikon, accessed on September 28, 2016.
- ↑ a b c Pre-market trading for private investors , schnigge.de, accessed on September 28, 2016.
- ↑ Graumarkt , boerse.de, accessed on September 28, 2016.
- ↑ Implementation Regulations “Trade per publication” , tradegate.de, February 18, 2011, accessed on September 28, 2016.
- ^ A b Hans Büschgen: The Small Stock Exchange Lexicon . 21st edition. Verlag Wirtschaft und Finanz, Düsseldorf 1998, ISBN 3-87881-121-7 , p. 432, 926 .
- ↑ Vorbörse , boerse.de, accessed on September 28, 2016.
