ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The crash. Before the New York Stock Exchange (NYSE) opened on Black Monday, October 19, 1987, there was pent-up pressure to sell stocks. When the market opened, a large imbalance immediately arose between the volume of sell orders and buy orders, placing considerable downward pressure on stock prices.

Detailed explanation-2: -“Black Monday” refers to the catastrophic stock market crash that occurred on Monday, October 19, 1987. The crash occurred worldwide, starting in Hong Kong and spreading throughout Asia and Europe before reaching the United States.

Detailed explanation-3: -“Black Monday” – as it is referenced today – took place on October 19 (a Monday) in 1987. On this day, stock markets around the world crashed, though the event didn’t happen all at once. Black Monday saw the biggest one-day percentage drop in U.S. stock market history.

Detailed explanation-4: -October 1987 The first contemporary global financial crisis unfolded on October 19, 1987, a day known as “Black Monday, ” when the Dow Jones Industrial Average dropped 22.6 percent.

Detailed explanation-5: -19, 1987, U.S. markets fell more than 20% in a single day. Black Monday was preceded by a bearish week in which the headline indexes gave up around 10% for the week. It is thought that the cause of the crash was program-driven trading models that followed a portfolio insurance strategy, in tandem with investor panic.