What is Black Market?

Black Market is a clandestine market dealing in goods and services prohibited by the government, in a prohibited manner. The market is referred ‘black ‘because it has some aspects of illegality attached to it. This is also referred as shadow economy or underground economy. The main characteristic of such economy is violation of the rules and regulations set up by the institution. The agents of the economy behave in manner that is not in accordance to norms of the market, for instance, production and trading in the products that are being prohibited by the governing institution. Hiding of the business activities to evade tax is also feature of black market.