Why Did The Stock Market Crash In 1987
Olivia Luz
In australia and new zealand the day is also referred to as black tuesday because of the time zone difference from the united states.
So that s why the stock market. On oct 19 1987 the stock began dip lower it is theorized that there were a large number of limit orders in the market a trade that is designed to sell a stock if the price drops below a certain. As the market sold off further individual investors who were watching the market very closely that day called their mutual funds and redeemed even more shares. It s speculated that the roots of the stock market crash of 1987 lay in a series of monetary and foreign trade agreements specifically the plaza accord and the louvre accord that were implemented.
It raised fears about this being a repeat of the stock. The world has marked the 20th anniversary of black monday the day in 1987 when the us stock market crashed 23 per cent. Black monday is the name commonly attached to the global sudden severe and largely unexpected stock market crash on october 19 1987. The australian market fared even worse the following day with the all.
This sharp correction was outside the experience of most city professionals. The 1987 stock market crash was due to a poor monetary policy. A quarter century ago the market was rising to all time highs throughout 1985 and 1986. Markets fall more than 20 in a single day.
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Therefore the first clue to the cause of the 1987 crash is. Then it took off in a hockey stick rise in 1987.
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