BLACK MONDAY Meaning and
Definition
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Black Monday refers to a significant and severe stock market crash that occurred on October 19, 1987. This event has gone down in history as one of the most disastrous drops in the global financial market. The term is primarily associated with the US stock market collapse, which also had a ripple effect on international markets.
On Black Monday, the Dow Jones Industrial Average (DJIA) plummeted by over 22%, resulting in a loss of around $500 billion in market value. This sudden and steep decline was sparked by an array of interconnected factors, including concerns over an overheated market, rising interest rates, computerized trading techniques triggering a chain reaction of selling, and increased volatility in the futures and options markets.
The consequences of Black Monday were felt worldwide, as other major stock exchanges experienced similar crashes. The event had a profound impact on investor sentiment, highlighting the vulnerabilities of financial markets and the potential for widespread panic. In response, regulatory measures were implemented to prevent future market collapses and improve stability.
Given its significance in financial history, the term "Black Monday" has since been adopted to describe any dramatic stock market crash or financial crisis around the world.
Common Misspellings for BLACK MONDAY
- vlack monday
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- bkack monday
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- boack monday
- blzck monday
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- blaxk monday
- blavk monday
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- bladk monday
- blacj monday
- blacm monday
- blacl monday
- blaco monday
Etymology of BLACK MONDAY
The term "Black Monday" originated as a result of the stock market crash that occurred on October 19, 1987. On that day, the Dow Jones Industrial Average (DJIA) dropped by more than 22%, marking the largest one-day percentage decline in the history of the stock market.
The use of the word "Black" in this context is likely a reference to the historical association of black with negative events or disaster, as seen in expressions like "Black Death" or "Black Friday". The Monday part of the term simply refers to the specific day of the week on which the crash occurred. As the event had a significant impact on the global financial markets, "Black Monday" became the moniker to describe this specific market crash, and the term has been commonly used ever since.
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