• The gray list contains stocks whose trading by a brokerage office or a bank is prohibited by the arbitration bureau.

  • Risk arbitrage is an investment strategy that hopes to profit from the stock prices of mergers and acquisitions.
  • Greylisting prevents investment banking clients of a risk arbitrage financial firm from transacting in these pending securities in order to prevent insider trading or the perception of insider trading.
  • Greylists are strictly confidential, as they may reveal information about mergers and acquisitions or other bank clients.