Black monday

Essay specific features

 

Issue:

Business

 

Written by:

Jack Q

 

Date added:

June 8, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 340

 

Was viewed:

3927 times

 

Rating of current essay:

 
Essay content:

However, the popular explanation for the crash is the selling of program trader, portfolio insurance and the great storm of 1987. Program trading is the use of computers in stock market to engage in arbitrage and portfolio insurance strategies. Through the 1970s and early 1980s, computers were becoming more important...
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As a result, the market was being controlled more and set prices by computers rather than by investors who made careful deals. It caused the crash of 1987 when the price of stock fall below a preset price, and a programmed computer automatically sells that stock. Millions of shares were carelessly bought and sold during the course two minutes...
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