Black Market

The underground economy or black market is a market consisting of all commerce on which applicable taxes and/or regulations of trade are being avoided. The term is also often known as the underdog, shadow economy, black economy or parallel economy. In modern societies the underground economy covers a vast array of activities. It is generally smallest in countries where economic freedom is greatest, and becomes progressively larger in those areas where corruption, regulation, or legal monopolies restrict legitimate economic activity.

The black market is not a physical place, but rather an economic activity in which merchandise and/or services are bought and sold illegally. Also called the "underground market," the black market gets its name due to the fact that its activity is conducted out of sight and often "in the dark," outside the sight of law enforcement. The black market can be illustrated by something as innocent and innocuous as selling gum on the playground, or by something as serious as the sale of smuggled weapons or drugs.