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A Large Single-Day Decline in the Stock Market Occurred on Monday

question 14

Essay

A large single-day decline in the stock market occurred on Monday, October 19, 1987, popularly referred to as "Black Monday." On this day,the Dow Jones Industrial Average (DJIA), declined by 23%, and other market indexes declined by roughly the same amount. While several potential reasons for the crash were identified, no unambiguous conclusions resulted. One clear dynamic for the price decline, however, did exist. Describe this dynamic and what stock market policy resulted.


Definitions:

Organizational Strategies

Plans or methodologies applied by businesses or institutions to reach goals, optimize performance, and manage resources efficiently.

Efficiency

The ratio of the useful work performed by a machine or in a process to the total energy expended or heat taken in.

Productivity

The measure of efficiency in which goods and services are produced, often evaluated by the output per unit of input.

Employee Assistance Programs

Work-based intervention programs designed to assist employees in resolving personal problems that may affect their job performance, health, and well-being.

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