The stock market was soaring in the early 1980s
The average number of shares traded on the NYSE jumped by 6 times! 🤯
On Wednesday, October 14 1987 new regulation shook the markets until they plummeted by 29% on Monday, October 19th -- just 5 days later!
In addition to the crash of the market, the balance between who wanted to buy and sell broke ⚖️
This led to 195 trading delays and halts in one day!
As always, many complex factors led to the crash including trade imbalances, major debt, and panic selling! 👻
Since then, the SEC and Federal Reserve have invented new policies to try to prevent panic selling 🏦
Choose an option
Not well
Very well, like a typical bubble
Horribly
At the local theater
Major debt
Panic Selling
Trade Imbalances
Safe investing practices
A crash cannot happen again
There were 195 trading halts/delays that day
Panic selling was a leading factor
The market dropped by 29% in the US
2000: Dotcom Bubble Burst
2008: Financial Crisis