Black Monday

Black Monday refers to October 19,1987, when the Dow Jones Industrial Average crashed about 22% in one day, setting a historical record.

Though many explanations have been given for the potential cause of the crash, none has been proven to be its reason. It is widely believed that fear and panic caused the crash to attain such proportions. After Black Monday, the Federal Reserve intervened aggressively and the stock market crash did not have any long term effects on the economy.

After Black Monday, the stock exchanges established trading curbs and circuit breakers to prevent panic selling.