Black Monday

Understand the essentials of Black Monday in just 50 minutes with this practical and concise book. On 19 October 1987, almost 58 years to the day since the Wall Street Crash of 1929, the Dow Jones lost 22.6% of its value, the largest drop ever recorded on the New York Stock Exchange. Stock markets around the world were thrown into disarray, and at one point the American authorities considered stepping in to put a stop to trading in response to the burgeoning economic crisis.

This book will provide you with a handy introduction to the causes of Black Monday, including the development of computer trading, and its consequences around the world. It also features a detailed examination of the steps taken to remedy the crisis, in particular the robust response of the Federal Reserve, and an introduction to the safeguards put in place to prevent similar problems in future.

About Black Monday

Black Monday is the name given to 19 October 1987, when share prices on the New York Stock Exchange plummeted, sowing panic around the world and wiping out share value on markets around the world. Fortunately, decisive action from the Federal Reserve and the US government limited the crash’s impact on the real economy and enabled economic growth to continue over the following two years.

In this book, you will discover the causes of Black Monday and learn about its impact on financial markets around the world. A clear explanation of the impact of computerization on the finance sector, definitions of key terms and a discussion of the role of psychological factors in trading will give you everything you need to know about this major economic crisis.

This straightforward and accessible 58-page book is structured as follows:

• Introduction to Black Monday
• Context
  • The resurgence of the stock markets
  • Efforts to stabilize exchange rates
  • A troubling geopolitical context
• How the crisis played out
  • On Wall Street
  • The rest of the world
• Impact of Black Monday
• Summary