Black Market

What Does Black Market Mean?

A type of economic activity that takes place outside of government-sanctioned channels. Black-market transactions typically occur as a way for participants to avoid government price controls or taxes, conducting transactions 'under the table'. The black market is also the means by which illegal substances or products - such as illicit drugs, firearms or stolen goods - are bought and sold.

Investopedia explains Black Market
While the black market is commonly associated with criminal activities involving drugs or weapons, it also has a financial component: black currency-exchange markets almost always appear when government controls on exchange rates prevent the use of natural exchange rates in the global marketplace.

Related Terms

Insider Trading
Perp Walk
Robber Barons
Tax Evasion
Whistle Blower
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Related Links

Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street - From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street.
Defining Illegal Insider Trading - The better you understand why insider trading can be criminal, the better you'll understand how the market works.
Policing The Securities Market: An Overview Of The SEC - Find out how this regulatory body protects the rights of investors.

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