GRAY MARKET Definition

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GRAY MARKET is the unofficial trading of securities before their formal public issue.

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APB is Accounting Principles Board or an Accounting Principles Board opinion (GAAP).

FLAT INTEREST refers to charging interest on the full original loan amount, rather than on the declining balance. With group based loans, for example, a common "interest rate" is "3% per month, flat, for 4 months". This means that a $100 principal amount lent is multiplied by 3%, and then by 4 months to come up with $12 in interest. Thus, $112 would be repaid over 4 months in equal installments.

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