Investor Glossary-crash of 1987Investor Glossary-crash of 1987Investor Glossary-crash of 1987Investor Glossary-crash of 1987Insightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Crash Of 1987

The HTML to link to this page
 

The Crash of 1987, Black Monday, took place on October 19, 1987. During the Crash of 1987, the Dow lost 22% of its value in one day. Shareholders could not reach their brokers, brokers could not supply prices and computers were overloaded. The Crash of 1987 dwarfed the infamous Black Thursday of 1929. However, unlike the 1929 crash, the Crash of 1987 was short-lived. It took three years, not 35, for the Dow to recover to levels seen prior to the Crash of 1987. To prevent another Crash of 1987, the New York Stock Exchange installed circuit breakers to curb trading during periods of high volatility. Economists cite numerous reasons for the Crash of 1987, including increasing interest rates, high price-earnings ratios, trade and budget deficits, and program trading.



Rate this Crash of 1987 definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use