What is the dot com bubbleThe dot-com bubble was a historicspeculative bubble covering roughly1997 - 2000 during which stock marketsin industrialized nations saw their equityvalue rise rapidly from growth in theInternet sector and related fields.
Why is dot com bubble happened The dotcom bubble grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups and the failure of dotcoms to turn a profit.
What happened with the dot com bubbleDotcom Bubble NasdaqEventually, manyof these startup companies attracted the attention of venture capitalists who were interested in financing the startups, takingthem public and, hopefully, reapingmassive profits.
What happened with the dot com bubble(2)Startups began to pay their employees withcompany shares with the intention that theshares would become very valuable whencompany eventually went public.
What happened with the dot com bubble(3)The majority of the software companiesthat were started during this era werelocated in Silicon Valley, near SanFrancisco, which became a technologyMecca. PCs became even more popular inthe mid-1990s, when blockbuster PCgames such as Sim City and Duke Nukemwere launched and inspired many youngpeople to become tech savvy.
Corporate movementInvestors poured money into internetstartups during the 1990s in the hope thatthose companies would one day becomeprofitable, and many investors and venturecapitalists abandoned a cautious approachfor fear of not being able to cash in on thegrowing use of the internet.
How did companies people sufferthe Internet boom is sometimes meant torefer to the steady commercial growth ofthe Internet with the advent of the WorldWide Web, as exemplified by the firstrelease of the Mosaic web browser in 1993,and continuing through the 1990s.
Affected by dot com bubbleThe height of the boom was characterizedby enormous increases in stock prices,and especially the prices of Internetrelated assets. The bust saw the rapiddecline of most of the same prices.