The document summarizes the dot-com bubble that occurred from 1995-2000. Speculative investing in internet companies fueled a boom, as many companies relied on venture capital and IPOs despite having no source of income. The bubble peaked in 2000 and burst as many companies failed, causing the NASDAQ to decline significantly. While some technology jobs were lost, the long-term impact was reduced investment in internet companies and fewer students pursuing computer-related degrees.

1. The DotCom Bubble in California s1170225 Naoki Okada

2. Topic Introduction Background Bubble growth IPO Boom Free Spending Bubble bursts Aftermath

3. Introduction The dot-com bubble was a speculative bubble covering roughly 1995-2000. During which stock markets industrialized nations saw their equity value rise rapidly growth in the more recent Internet sector and related filed.

4. Background The boom began against a backdrop of generally improving economic conditions in the U.S. in 1993 and 1994. The American economy had come out of the recession of 1990-1991 in fair shape, with some of the misallocations of the 1980s boom having been corrected.

5. Bubble growth A canonical “dot-com” company's business model relied on harnessing network effects by effects by operating at a sustained net loss to build market share. During the loss period the companies relied on venture capital and especially initial public offerings of stock to pay their expenses while having having no source of income at all.

6. IPO Boom During 1994 and early 1995, the internet had begun to enter the broad public consciousness. The legendary Netscape initial public offering(IPO) occurred in August of 1995. The Netscape IPO served as a highly visible symbol for the potential of the Internet.

7. Free Spending According to dot-com theory, an Internet company's survival depended on expanding its customer base as rapidly as possible, even if it produced large annual losses. Cities all over the United States sought to become the "next Silicon Valley" by building network-enabled office space to attract Internet entrepreneurs.

8. Bubble bursts In the end, there were too few resources available for all of the plans formulated and funded during the boom to succeed. The Federal Reserve renewed its concern about an over-heating economy and resumed its rate increases. From the March peak of 5048, the NASDAQ slid to 2471 by the end of 2000.

9. Aftermath The stock market crash of 2000?2002 caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002. Nevertheless, laid-off technology experts, such as computer programmers, found a glutted job market. University degree programs for computer-related careers saw a noticeable drop in new students.

10. Reference http://en.wikipedia.org/wiki/Dot-com_bubble http://wiki.mises.org/wiki/Dot-com_bubble