Week12

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Week12

  1. 1. The DotCom Bubble in California s1170153 Noritaka Shimizu
  2. 2. Contents● What is the DotCom Bubble?● How did companies and individuals suffer?● What was the impact of this bubble in the financial sector?
  3. 3. What is the DotCom Bubble? The DotCom Bubble was a speculative bubblecovering roughly 1995-2000 during which stockmarkets in industrialized nations saw their equityvalue rise rapidly from growth in the more recent internet sector and related fields.
  4. 4. What is the DotCom Bubble? While the latter part was a boom and bust cycle,the Internet boom is sometimes meant to refer tothe steady commercial growth of the Internet withthe advent of the world wide web, as exemplified by the first release of the Mosaic web browser in 1993, and continuing through the 1990s.
  5. 5. How did companies and individuals suffer? A combination of rapidly increasing stock prices,market confidence that the companies would turnfuture profits, individual speculation in stocks, and widely available venture capital created anenvironment in which many investors were willingto overlook traditional metrics such as P/E ratio in favor of confidence in technological advancements.
  6. 6. What was the impact of this bubble in the financial sector? The financial crisis was triggered by a complexinterplay of valuation and liquidity problems in the United States banking system in 2008.
  7. 7. What was the impact of this bubble in the financial sector?The bursting of the United States housing bubble, which peaked in 2007,caused the values of securities tied to United States.
  8. 8. What was the impact of this bubble in the financial sector? By 2001 the bubble was deflating at full speed. A majority of the dot-coms ceased trading afterburning through their venture capital, many havingnever made a ″net″ profit. Investors often referred to these failed dot-coms as "dot-bombs."
  9. 9. References● Dot-com bubble http://en.wikipedia.org/wiki/Dot-com_bubble● IPO pricing in the dot-com bubble http://onlinelibrary.wiley.com/doi/10.1111/1540-626
  10. 10. ● Thank you for reading

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