1987: Black Monday Crash

Let’s talk about the crash that sparked fears of a second Great Depression across the globe.

The market was soaring in the early 1980s

The average number of shares traded on the NYSE jumped by 6 times! 🤯

But on Wednesday, October 14 new regulation shook the markets until they plummeted by 29% on Monday, October 19th of 1987

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In addition to the crash of the market, the balance between who wanted to buy and sell broke ⚖️ This led to 195 trading delays and halts in one day!

As always, many complex factors led to the crash including trade imbalances, major debt, and panic selling! 👻

Since then, the SEC and Federal Reserve have invented new policies to try to prevent panic selling

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Test your knowledge

Before the crash, how was the market performing?

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What did not lead to the crash?

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Which of the following is not true?

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What's next?

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