Underground market Meaning: Definition, Examples, and Translations

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underground market

[ˈʌndərˌɡraʊnd ˈmɑrkɪt ]

Definitions

^{Context #1 | Noun}

illegal trading

An underground market refers to a secret and illegal network of buying and selling goods or services that are prohibited by law. These transactions usually take place in hidden or discreet locations to avoid detection by authorities.

Synonyms

black market, illicit trade, shadow economy.

Which Synonym Should You Choose?

Word	Description / Examples
underground market	Used when referring to economic activities or markets that operate below the surface, often out of sight of regulations and authorities. This term is generally neutral but implies a hidden aspect. The underground market for vintage electronics has grown significantly. Collectors often turn to the underground market to find rare items.
black market	This term has a negative connotation and refers specifically to illegal buying and selling of goods and services. It implies unlawful activities and is often used when discussing crime or unregulated, dangerous transactions. After the ban, the price of the product skyrocketed on the black market. The authorities cracked down on the black market for counterfeit medicines.
shadow economy	Used when discussing economic activities that take place outside of official recognition or regulation, including both legal and illegal transactions. Often used in academic or policy discussions. The shadow economy can account for a significant portion of a country's GDP. Efforts are being made to integrate the shadow economy into the formal sector.
illicit trade	Emphasizes the illegality of the trade, often used in formal or legal contexts. It suggests a clear violation of laws or regulations. Law enforcement agencies are stepping up efforts to combat illicit trade in wildlife. Illicit trade in human organs is a serious global issue.

Examples of usage

The underground market for counterfeit goods is thriving in many major cities.
Drug trafficking often operates within the underground market.
Many people turn to the underground market to purchase restricted items.

^{Context #2 | Noun}

alternative economy

In a broader sense, an underground market can also refer to an alternative economy that exists outside of mainstream channels. This can include bartering, trading services, or exchanging goods in a non-traditional way.

Synonyms

alternative marketplace, informal economy, parallel economy.

Which Synonym Should You Choose?

Word	Description / Examples
underground market	This term is usually used when referring to illegal or black market activities where goods and services are exchanged without the oversight of official regulations and laws. Buying stolen goods or illegal substances often happens in the underground market
informal economy	This term describes economic activities that are not regulated by the government and are often not taxed, which can include both legal and illegal activities. Street vendors and home-based businesses are common parts of the informal economy in many developing countries
parallel economy	Similar to the informal economy, but specifically refers to a secondary, coexisting set of economic activities that may be legal but operate outside of the official policies and regulations. The parallel economy can flourish in countries with heavy regulations, where small businesses find it easier to operate outside of official channels
alternative marketplace	This phrase refers to non-mainstream or unconventional ways of buying and selling, which may operate legally but outside of traditional economic systems. Many people look for unique handmade crafts in alternative marketplaces

Examples of usage

The underground market of local farmers exchanging produce is a sustainable alternative to large supermarkets.
Bartering skills are essential in the underground market of the post-apocalyptic world.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

Underground markets can influence official economies by providing goods that might be restricted or overpriced in legal markets.
Such markets often thrive during economic downturns when people seek alternatives to expensive legal options.

Legislation

Many countries struggle with the regulation of underground markets, as they can involve illegal substances, weapons, or stolen goods.
Governments attempt to combat these markets through increased law enforcement and policies, yet they often prove difficult to eliminate.

Culture

In urban settings, underground markets can be cultural hotspots, showcasing local art, music, and food that may not be present in mainstream markets.
These markets have been popularized in films and literature, often depicted as places of excitement and danger.

Technology

The rise of the internet has led to the creation of cyber underground markets, where people trade illegal items anonymously.
Cryptocurrency is frequently used in these markets to provide added anonymity for transactions.

Origin of 'underground market'

Main points about word origin

The term 'underground' in this context refers to hidden or secretive activities, deriving from the idea of being below the surface.
Markets have been a part of trade for thousands of years, with 'market' originating from the Latin word 'mercatus', meaning 'trade' or 'commerce'.

The term 'underground market' dates back to the early 20th century, gaining prominence during the Prohibition era in the United States when illegal alcohol sales thrived. The concept of underground markets has evolved over time to encompass various forms of illicit trade and alternative economies. Today, underground markets continue to operate globally, adapting to technological advancements and law enforcement efforts.