1987 stock market drop

History News Network | What Caused the Stock Market Crash of ?

A rapid and severe downturn in stock prices that occurred in late October of After five days of intensifying stock market declines, selling pressure hit a peak on October 19, known as Black Monday. People speculate on the exact causes of the crash, which was rare in that the market made up most of its losses rather quickly, rather than preceding a protracted economic recession.

Some people point to the lack of trading curbs, which markets have today, and automatic trading programs in place at the time as possible culprits. And while the crash began as a U. Investors and regulators learned a lot from the crash, specifically with regards to the dangers of automatic or program trading.

10 lessons from the market crash of - MarketWatch

In these types of programs, human decision-making is taken out of the equation, and buy or sell orders are generated automatically based on the levels of benchmark indexes or specific stocks. In a disorderly market, humans are needed more than ever to assess the situation and possibly override imprudent market thresholds.

Dictionary Term Of The Day.

Reagan's Leadership, Too, Was Questioned After Market Drop : It's All Politics : NPR

A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin?

This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Stock Market Crash Of Share.

Stock Market Crash Of October Effect Black Monday Dow Jones Industrial Average DJIA Dow Jones Industrial Average Dow Jones 65 Composite Average Held At The Opening Trading Halt Black Tuesday. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.