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black monday

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Financial Dictionary

Black Monday

The most notorious day in financial history (Oct 19, 1987). The DJIA fell 508 points, almost 22%.

Investopedia Commentary

Since Black Monday, there have been multiple mechanisms built into the market to prevent panic selling such as trading curbs and circuit breakers.

Related Links

Cyclical Versus Non-Cyclical Stocks
The Greatest Market Crashes

See also: Circuit Breaker, Correction, Dow Jones Industrial Average - DJIA, Kondratiev Wave, New York Stock Exchange - NYSE, Trading Curb

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Financial Dictionary

Black Monday

A widely used reference to October 19, 1987, the day the Dow Jones Industrial Average dropped a record 508 points, or nearly 23%. Disarray in the financial markets resulted from a combination of trade deficits, budget deficits, and potential government regulation of mergers and issuance of junk bonds.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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