Black Monday: A Global Stock Marktet Crash
What is Black Monday?
Black Monday is a term used to describe a global stock market crash that occurred on October 19, 1987. The crash was the most severe one-day decline in stock market history, with the Dow Jones Industrial Average losing 22.6% of its value.
Causes of the Crash
The causes of the crash are still debated, but some of the factors that may have contributed include:
- Excessive speculation in the stock market
- A lack of regulation in the financial industry
- The use of computerized trading programs
Impact of the Crash
The crash had a significant impact on the global economy. It led to a loss of confidence in the stock market and a sell-off of stocks around the world. The crash also contributed to a recession in the United States.
Lessons Learned from the Crash
The Black Monday crash taught investors several important lessons, including:
- The stock market is not always a safe place to invest
- It is important to diversify your investments
- You should not invest more money than you can afford to lose
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