Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Black Monday: A crash that shook the financial world
    Black Monday: A crash that shook the financial world
    Black Monday: A crash that shook the financial world
    Ebook37 pages16 minutes

    Black Monday: A crash that shook the financial world

    By 50minutes

    ()

    Read preview

    About this ebook

    Understand Black Monday in no time! Find out everything you need to know about this major financial crisis with this practical and accessible guide.

    On 19 October 1987, a number of factors came together to cause an unexpected drop in share prices on the New York Stock Exchange, with the Dow Jones ultimately losing 22.6% of its value in the course of a single day. This was the largest drop in the index’s long history, but fortunately the real economy emerged relatively unscathed from the crash and a crisis of the magnitude of the 1929 Wall Street Crash was averted.

    In 50 minutes you will be able to:
    • Identify the reasons for the sudden loss of share value on 19 October 1987
    • Find out about the crash’s impact on stock markets around the world
    • Understand the decisive action taken to prevent the crisis from worsening

    ABOUT 50MINUTES.COM | ECONOMIC CULTURE 
    The Economic Culture series from the 50Minutes collection provides the tools to quickly understand the main theories and concepts that shape the economic world of today. Our publications will give you elements of theory, definitions of key terms and case studies in a clear and easily digestible format, making them the ideal starting point for readers looking to develop their skills and expertise.
    LanguageEnglish
    Publisher50Minutes.com
    Release dateNov 3, 2017
    ISBN9782808004848
    Black Monday: A crash that shook the financial world

    Read more from 50minutes

    Related to Black Monday

    Titles in the series (8)

    View More
    View More

    Related ebooks

    Money & Monetary Policy For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      How To Spot A Financial Bubble

      Oct 2, 2020

      one of the most influential mathematicians of all time, Sir Isaac Newton, lost a fortune by investing in the South Sea Bubble of 1720. When asked why, with all his mathematical prowess, he could not foresee the collapse of the stock, he is reputed to

      3 min read

    • Article

      Stock Market Today: Stocks Close Out Worst April in Years With Another Slide

      Apr 29, 2022

      U.S. stocks finished both the day and the month on a down note as a fresh round of earnings forecasts from companies only added to investors' laundry list of concerns.  Last night, Amazon.com (AMZN, -14.1%) said first-quarter revenue rose 7% on a yea

      2 min read

    • Article

      Stock Market Today: Tech Rallies, Nasdaq Just Shy of New Highs

      Jun 17, 2021

      The Nasdaq Composite pressed higher Thursday, to within just a few points of a fresh closing record, flipping the script on how the technology-heavy index has acted for much of 2021. The Federal Reserve yesterday revealed higher expectations for infl

      2 min read

    • Article

      Rates Are Rising. Is It Time to Sell Your Bonds?

      Apr 11, 2018

      With interest rates still close to historic lows there has been lots of talk about how rising interest rates will reduce bond values. This hasn't been helped by President Trump's trade war threats, which have the potential of causing rising prices a

      6 min read

    • Article

      The Price of Time: The Real Story of Interest

      Jun 29, 2022

      Allen Lane £25 For those who work in finance or markets, the most important price – the biggest number of all – is the interest rate the United States Federal Government pays to borrow. Currently about 3 per cent, it was depressed to a record low dur

      3 min read

    • Article

      7 Low-Cost Gold ETFs

      Sep 19, 2018

      Gold investors typically tout several virtues of the yellow metal: It hedges against inflation, they say, it's an uncorrelated asset that doesn't move with the stock market and it can grow in value when national or even global uncertainty is high. Th

      6 min read

    • Article

      18-year Bull Has Ended

      Sep 4, 2020

      18-year Bull Has Ended
      1 min read

    • Article

      Book In The News… The Wild Adventurers Who Put The Sugar In Your Tea

      Oct 15, 2021

      Money, Power and the Traders Who Barter the Earth’s Resources Javier Blas and Jack Farchy Random House Business, £20 Most of us don’t pause to consider how the tea or sugar in our morning cuppa got into our mug, as the raw materials that make ou

      1 min read

    • Article

      An Alternative To GDP

      Aug 7, 2020

      the single most powerful ideology of our time is the fixation on growth. Irrespective of whether it is growth at a macro or micro level, if entities can demonstrate some form of growth, they are perceived to be on the road to success. The time, howev

      1 min read

    • Article

      Should We Fear Stagflation?

      Sep 10, 2021

      Ever since coronavirus vaccines arrived on the scene more rapidly than expected last year, the hope has been that economies could re-open quickly, households flush with savings would go out and spend, and we’d see a resurgence in growth to match the

      2 min read

    • Article

      The Crash And After

      Apr 16, 2020

      The Crash And After
      6 min read

    • Article

      5 Stock Picks With Bulletproof Profit Margins

      Apr 27, 2022

      Making good stock picks is challenging at any time. But these days, investors must be wary of companies that are vulnerable to higher-for-longer inflation, as well as lingering supply-chain disruptions, rising interest rates and the scary geopolitica

      1 min read

    • Article

      Learning The Wrong Lessons

      May 14, 2021

      The lesson that many investors take from the success of David Swensen (see right) is that they can improve their returns by ditching traditional stocks and bonds for alternative investments (see below). Nothing is further from the truth. Plenty of en

      1 min read

    • Article

      The Warning Signs

      May 27, 2021

      Sensex P/E multiple is among the highest in the world. BSE Small-cap index is at 62 times trailing earnings per share Commodity prices have risen sharply over past few months. This will hit financials of a large chunk of companies, especially those i

      1 min read

    • Article

      The Spectre Of Inflation

      Jul 9, 2021

      The Spectre Of Inflation
      3 min read

    • Article

      Some Basics on How to Pick Dividend Growth Stocks

      Mar 13, 2021

      For those who want to trim back their risk in volatile growth stocks, moving into value and dividend stocks in 2021 might be worth consideration. Dividend stocks are those that pay you to own them. You get a dividend check paid into your account ever

      4 min read

    • Article

      Five Mistakes Investors Make

      Oct 16, 2020

      Five Mistakes Investors Make
      3 min read

    • Article

      Invest Like A Pro

      Aug 8, 2019

      Invest Like A Pro
      2 min read

    • Article

      7 Best Growth ETFs to Reap the Recovery's Rewards

      Apr 8, 2020

      NHL Hall of Famer Wayne Gretzky used to say, "I skate to where the puck is going to be, not to where it has been." During these trying times, these are wise words. As it applies to growth stocks, you'll want to consider where these companies are goin

      8 min read

    • Article

      Stagflation: America's Next Potential Economic Hurdle

      Nov 10, 2020

      The shock to the economy from COVID-19 has been roughly of the same magnitude as the Great Financial Crisis (GFC) of 2008. However, while the GFC was a shock to credit, the pandemic has been a shock to income, for both individuals and businesses. Lik

      5 min read

    Related categories

    Reviews for Black Monday

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Black Monday - 50minutes

      A crash that shook the financial world

      When: 19 October 1987.

      Where: the New York Stock Exchange.

      Context: against a backdrop of rampant speculation, the unexpected announcement of the US trade deficit seriously worried investors and drove share prices down.

      Key protagonists:

      Ronald Reagan (1911-2004), 40th President of the United States, 1981-1989. When Reagan came into office in January 1981, he embarked on a programme of tax reduction in order to stimulate economic growth. As a result, stock markets around the world rose constantly during his presidency.

      Paul Volcker (born in 1927), American economist and Chairman of the Federal Reserve from 1979 to 1987. He countered inflation by raising exchange rates on the Federal Reserve.

      Alan Greenspan (born in 1926), American economist and Chairman of the Federal Reserve from 1987 to 2006. He supported banks during the darkest days of the 1987 crisis by supplying liquidity.

      Key terms:

      Dow Jones: the Dow Jones was created in 1885 and is the second-oldest stock exchange index in the United States. Even though it only lists 30 companies, it is a key reference point for the New York Stock Exchange.

      Trading: the buying or selling of shares on the financial markets, carried out by financial operators known as traders.

      Speculation:

      Enjoying the preview?
      Page 1 of 1