What Was the Bite of 87
The bite of 87 refers to the sharp stock market crash on October 19, 1987, when the Dow Jones Industrial Average fell roughly 22.6% in a single day. The event is also called Black Monday.
Who Got Bitten in the Crash
Institutional investors, pension funds, and large brokerage firms with heavy equity exposure were hit hardest. Individual investors who held concentrated portfolios or used margin also suffered significant losses.
Why the Bite of 87 Still Matters
The crash exposed weaknesses in market structure, including program trading and liquidity gaps. Regulators later introduced circuit breakers and improved risk controls to limit future damage.
For deeper background on the 1987 crash and its aftermath, see the Federal Reserve Bank of St. Louis historical data at stlouisfed.org.
