What is meant by the term “black market”?

A black market is any market where the exchange of goods and services takes place in order to facilitate the transaction of illegal goods or to avoid government oversight and taxes, or both.

Reasons for black markets

• To avoid taxes
• Buying and selling goods prohibited by law such as cocaine or cannabis
• Hoarding of commodities due to expectation of higher prices
• To highly restricted and/or taxed goods