Black Money

What is 'Black Money'

Black money is money which is earned through any illegal activity controlled by country regulations. Black money proceeds are usually received in cash from underground economic activity and, as such, is not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through money laundering.

BREAKING DOWN 'Black Money'

Possible sources of black money include drug trafficking, weapons trading, terrorism, prostitution, selling counterfeit or stolen goods and selling pirated versions of copyrighted items such as software and musical recordings. Black Money is also the name of a television series hosted by Lowell Bergman that explores the secret world of bribery in international business.

RELATED TERMS
  1. Black Economy

    The segment of a country's economic activity that is derived ...
  2. Black Market

    Economic activity that takes place outside government-sanctioned ...
  3. Underground Economy

    The underground economy refers to illegal economic activity. ...
  4. Black

    A description of a positive balance on a company's financial ...
  5. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, ...
  6. Black Thursday

    The name given to Thursday, Oct. 24, 1929, when the Dow Jones ...
Related Articles
  1. Investing

    The Mechanics Of The Black Market

    Black markets will continue to exist as long as we have regulations and taxes. Discover how they work.
  2. Markets

    How the Underground Economy Affects GDP

    Find out how the underground, or shadow, economy affects the accuracy of the calculation of a country's gross domestic product (GDP).
  3. Markets

    How Big Is the Underground Economy in America?

    While the U.S. has a relatively small underground economy compared to the OECD average, since the global financial crisis it appears to be on the rise.
  4. Markets

    Where Does the Term "Black Friday" Come From?

    The term Black Friday can be used in a couple of different contexts; one positive and one negative.
  5. Markets

    What Happened On Black Monday?

    On October 19, 1987, the Dow Jones dropped 508 points, or almost 22% in a single day. That was Black Monday.
  6. Personal Finance

    9 Worst Items to Buy on Black Friday

    If these items are on your holiday shopping list, consider finding a substitute – or don't expect to get the deal of the year.
  7. Investing

    Understanding Money Laundering

    The process of creating the appearance that large amounts of money obtained from serious crimes actually originated from a legitimate source.
  8. Personal Finance

    Steps To Getting Out Of Debt

    Learn how to get your bank account back in the black and reach your financial goals.
  9. Personal Finance

    3 Stores to Avoid This Coming Black Friday

    Learn what stores are best to avoid if you absolutely must participate in the madness known as Black Friday, and identify ways to obtain even better deals.
  10. Markets

    Retailers Rebel Against Black Friday: Bad Move?

    The Black Friday creep may have hit a wall as some stores are shutting their doors on Thanksgiving and even Black Friday to give employees the day off.
RELATED FAQS
  1. How is the stock market affected by Thanksgiving and Black Friday?

    See why Thanksgiving and Black Friday sales numbers are considered to be important indicators for stock market activity throughout ... Read Answer >>
  2. What is Black Friday?

    Black Friday is a popular label attached to the Friday following Thanksgiving Day in the US. This day marks the beginning ... Read Answer >>
  3. To whom was the term "corporate kleptocracy" first applied?

    The term "corporate kleptocracy" is believed to have originated in a 2004 report by the Special Committee of the Board of ... Read Answer >>
  4. What methods are used to launder money?

    Learn about the methods that criminals use when they are looking to launder money. Many different methods are used, and they ... Read Answer >>
  5. Why does fighting money laundering reduce overall crime?

    Fighting money laundering reduces overall crime by helping identify perpetrators, restoring stolen money to victims and disrupting ... Read Answer >>
  6. What is the difference between a command economy and a shadow economy?

    Learn about command and shadow economies, how the two economies function and the main difference between the two. Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center