Black Monday (1987)

High school (ages 12+)
Mathematics & Numbers

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/black-monday--1987-

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the date of global stock market crash?October 19, 1987
2. What is the estimated worldwide financial loss?US$1.71 trillion
3. What was Black Monday?On October 19, 1987, stock markets around the world fell very quickly, losing about $1.71 trillion. It was the biggest crash in history at that time.
4. Why did the stock market crash so fast?Many computer programs called "portfolio insurance" automatically sold stocks when prices dropped, which made the fall even faster. The selling created a loop that pushed prices lower.

Stock Index Futures: Contracts to buy or sell a stock market index at a future date, used for hedging and speculation.
Market Liquidity: The ease with which an asset can be bought or sold in the market without affecting its price.
Monetary Policy: Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.