There was talk about a tax on M&A activity

I'm no scholar on the 1987 crash but I've heard the usual explanations. One that I read this week that makes sense is from Matt Maley. He talks about the government had floated a trial balloon regarding a takeover tax.

He remembers that triggering worries that were already in the market. When it wasn't withdrawn, the selling accelerated and portfolio insurance sales kicked off.

It's a good read.

Here are some news reports from that day.