Unofficial Premium

Unofficial Premium When a new issue is on the market, but allotment of shares is yet to be made, a premium or a higher price is often put on the shares, unofficially. The official premium, if any, comes after the listing of the share on the stock exchange and is determined by the forces of demand and supply. The unofficial premium market judges the value of the shares, its scarcity, and its future demand. It then puts a premium on the share price and one can immediately sell one’s share on allotment. The unofficial premium rates are regularly published in Money Opportunities and Shree Profit. See GREY MARKET.

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