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Most real estate developers and jewelers in India accept part if not the whole payment for property/goods in the form of Black money. These transactions are often off the books - should I look at investing in their stock or should I just stay away?

  • I've never heard the term Black Money, would you care to define it? – JoeTaxpayer Dec 31 '14 at 14:29
  • @JoeTaxpayer Primarily money unaccounted for anywhere and hidden from the government, so you pay no tax and the wealth cannot be traced to you. – DumbCoder Dec 31 '14 at 14:39
  • It's "black money" in the sense of "black market", i.e., money in an underground economy. – BrenBarn Dec 31 '14 at 19:53
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If they're hiding their profits from the government, what makes you think they wouldn't hide their profits from their shareholders?

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Every listed company needs to maintain book of accounts, when you are investing in companies you would have to look at what is stated in the books and along with other info decide to invest in it.

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    Bad information is one of the largest risks to investing in "emerging" markets. – quid Dec 31 '14 at 17:45

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