What is a gray list?

The gray list is a list of securities that are currently not eligible for the trade in the risk referee division of the investment bank. Incorporation into this list does not mean that there is nothing wrong with these securities. In some cases, the basis for inclusion in the list is related to the fact that companies issuing shares are already working with the bank in a situation of merger or acquisitions. Once these matters are fully resolved, securities can be removed from the list, allowing the bank to actively trade shares.

The concept of the gray list is to protect the interests of the bank by avoiding investments in securities where an increased degree of risk is currently present. In the case of merger or acquisition, the outcome of these proceedings will have a certain type of impact on the value of shares issued by each company involved in the trade agreement. Although this effect is often positive, this can also lead to a decline in stock problems. Until the acquisition or merger is completedThe impact is not determined, the shares remain on the gray list.

Investment banks do not cause the gray list specifics to be available to the general public. The document is strictly used for internal purposes. This is because companies currently on the list work with the bank in a certain capacity and details of these business arrangements are considered confidential. For this reason, no one is aware of who is currently on the list, except for individual companies and employees of the bank who are directly involved in the risky arbitration division or are authorized to have access to the gray list within their ongoing work obligations.

While offices of companies that are currently found on the Gray Bank's Linking Bank can consider these shares as eligible for trade. For example, a block shopping table in an investment bank may not have a problem with makingm transactions that include these shares. This apparent contradiction in the bank's attitude is explained by what is referred to as the Chinese wall. It is basically a division that occurs as a result of the intimate nature of the interaction of each department with customers. Block shopping tables are unlikely to know the approaching merger or acquisitions and will handle shares issued by a client in the same way as any other shares issued by other banks of banks.