The DotCom Bubble in California s1180091 Masayoshi Kataoka
Contents• Introduction• What is the dot com bubble?• What happened with the dot com bubble?• How did companies and individuals suffer?• What was the impact in the financial sector?• Why dot com bubble crashed?• Conclusion• Reference
Introduction• I know that the collapse of the dot com bubble in business during 2000-2001. But, I dont know in detail it.• So, I interested about dot com bubble and I want to know it.• Here are the research and conclusion on it.
What is the dot com bubble?• Dot com bubble happened by the founding of a group of new Internet-based companies commonly called dot-com.• It called “dot com” because companies were seeing their stock prices shoot up if they simply added an “e-” prefix to their name and/or a “.com” to the end.
What happened with the dot com bubble?• In dot com bubble, venture capitalists saw record- setting growth with less caution than usual, choosing to mitigate the risk by starting many contenders.• That reason, dot com companies experienced meteoric rises in their stock prices.
How did companies and individuals suffer?• A few company founders made vast fortunes when their companies were bought out at an early stage in the dot com stock market bubble.• A bubble occurs when speculators note the fast increase in value and decide to buy in anticipation of further rises, rather than because the shares are undervalued.
What was the impact in the financial sector?• In financial markets, a stock market bubble is a self- perpetuatung rise or boom.• Andrew Smith that British author said that the Financial Industrys handling of Initial Public offerings tended to benefit the banks and initial investors rather than the company itself.
Why dot com bubble crashed?• The U.S. Federal Reserve increased interest rates six times, and the economy began to lose speed during 1999 - 2000.• Several companies could not weather the financial burden and were forced to file for bankruptcy.
Conclusion• I know what dot com bubble and particular history.• I understand dot com bubble that is caused by diffuse the Internet and it changed business or life.