2. 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
3. Introduction
•
I know that the collapse of the dot com bubble in
business during 2000-2001. But, I don't 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.
4. 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.
5. 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.
6. 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.
7. 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 Industry's handling of Initial Public
offerings tended to benefit the banks and initial
investors rather than the company itself.
8. 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.
9. 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.
