Grey market
The Grey capital market is that part of the financial markets, not like the "white capital market," the government financial regulations or similar subject, but not illegal as the "Black capital market " operates businesses requiring a license without the approval of the regulatory authority.
Form of distribution
The offers of the gray market are recruited all eligible usual sales channels: Postal brochure advertising, telephone advertising, display advertising, e- mail advertising, fax advertisements. The use of unsolicited telephone advertising and of final negotiations by personal visit is relatively strongly developed. From the form of marketing alone can no inference be drawn about the authenticity of an offer. However, problematic providers use for speculative exchange transactions happened relatively often unsolicited telephone advertising.
Provider
The Grey capital market includes correct as problematic provider. This applies in principle to the institutional capital market. However, the gray capital market, the proportion of problematic providers is significantly higher.
Products
Some examples of typical offers the gray capital market:
- Corporate investments,
- Tax savings of all kinds
- Real Estate investments
- Acquisition of real estate for investment purposes, even disproportionately overpriced so-called junk property
- Builders models
- Acquirer models
- Gambling investments
- Diamond trade
- Futures
The seriousness of such offers is very different. Is available for each of offer the complete range of fully correct to doubt tort.
In real estate investments, the problem is usually the inflation of prices and contracts with hidden contingent risks, often related to intentions of tax optimization. A high debt financing often obscured the overpricing. However, the objects are to be sustainable in deficit, so have the opposite of the expected security properties.
In precious stones it is the problem of the often much inflated prices for the end buyer and partly also quite selling completely worthless stones. An investment effect is not present, provided prices, for example, five times the possible proceeds at resale.
Case of forward transactions of the gray market is not bankable institutional form of distribution meant, but a mediation that works especially about unsolicited telephone advertising. This attempts to lure the forward rates quite occasionally reach high profits. The funds obtained are in the best case actually applied in the agreed form - more or less efficient - in practice, mostly loss-making. In the worst case, the investment and proof of success may be forged. A Ponzi scheme may be.
In addition, sometimes the gray capital market also attributed to fraud in financial transactions, such as:
- Bank guarantee transactions
- Nigeria - Connection ( advance fee fraud )
- Deposit loans
However, this is not about investment, not derivatives to institutional capital markets. The assignment to the gray capital market is therefore rather unusual.
Damage by rogue providers
Many investors use in this market steuerentwidmetes money and shy away from the public enlightenment. In such cases it is also usually omitted in case of fraud on an ad. Furthermore, it is often the investment decision was so irrational that it 's social environment is not to be known from shame. For the investor is often foreseeable that no prospect of return receipt of the money is. Is dispensed with a display, because it prolongs the anger at the wrong decision unnecessary.
Legal situation in Germany
According to the German Federal Criminal Police Office of the annual loss of an estimated 20 to 25 billion euros. The German Bundestag is examining the possibilities for regulation of the gray market and has conducted an expert consultation on 1 July 2009. So is, among other investor protection be improved. The protection is to be ensured through monitoring by the labor inspectorates. In addition, the registration with the respective Chamber of Commerce, the proof of competence and the professional indemnity insurance should be mandatory. Similar to insurers and banks, advising protocol duties, including advising itself and the information and document sharing, as well as the commission disclosure to unify the overall industry. On June 1, 2012, the so-called gray market law came into force, whereby an improved system protection is intended.