Page 13 - IP2A 012 Black Monday

The most widely accepted

explanation for Black Monday

1987, is that the computers

went berserk. They had been

pr o g r a mmed t o perf o r m

lightning speed stock trades

based on trends and analyses prices were dropping. Today,

of changing market conditions. computer assisted trading

Essentially, the computers remains an important strategy

would analyze a basket of among investment firms, and is

related securities and sell off often cited as a cause of rapid

shares if it seemed that share fluctuation on the stock market.