You will prepare and submit a term paper on Market Crash of 1987. Your paper should be a minimum of 1500 words in length. It is evidently clear from the discussion that in August 25th, 1987 the markets hit a new high as at this time the Dow Jones had hit a record of 2722.44 points and then it slanted. On Monday, October 19th, 1987(black&nbsp. Monday), saw a great stock market crash as the Dow Jones Industrial (DJIA) dropped by 508 points to 1738.74 (22 .61%) of its single-day trading percentage decline in history. this was a drop 36.7% from its high on August 25th, 1987. The S & P 500 index fell by 57.86 points which were a decline of 20.46% overall. The NASDAQ fell by 46points which were 11.35% of its value. This market crash is a significant event because it showed the weaknesses of the swiftness and sternness of the market decline and the weakness of the trading systems and how they could be strained and bring close the breaking in extreme conditions. A crisis was made worst when the major problems in the trading systems interacted with the prices decline. At the end of October stock markets in Hong Kong 45.5%, the united kingdom it was a fell 26.45%, Australia had a 41.8%, Spain 31%, Canada 22.5%, and the New Zealand market was the most hit as it had a fall of 60%from its peak. The cause of 1987 market crash is deep-rooted from the futile attempts by the United States and the G7 countries (Japan, United Kingdom, Germany, Italy, Canada, and France) in preventing the dollar from falling in the international exchange markets. Some various causes that were believed to have contributed to the 1987 market crash include the illiquidity, market psychology, program trading, and overvaluation. This causes all contributed to the 1987 crash but not entirely. Many analysts blamed the computer trading as the computers were programmed in an automatic state hence they could order large stock trades automatically while certain markets conditions prevailed. The portfolio insurance is believed to have contributed to the crash. the purpose of the portfolio insurance was to protect individual investors from any losses and when used by many investors at the same time it may assist in the fall of prices a systemic event with a feedback loop.