3. What is the Dot-com bubble
● The Dot-com bubble is also know as the
Internet bubble and the Information Technology
Bubble.
● It is the unusual high tide of actual-demand
investment of dot-com company or equity
investment which happened centering on the
market in the United States of America in the
1990s.
4. Why dot-com bubble happened
● In the 1990s, electronic commerce greatly
developed and it shock traditional business
model.
● Additionally, the U.S. low interest rate made
easy supply of venture initial funding or
investment capital.
5. The Bubble burst
● Interest rate raise of the Board of Governors of
the Federal Reserve System triggered the stock
price collapsed quickly.
● The terror attack on September 11, 2001
accelerated it further.
6. Result of Bubble Burst
● Although the Nasdaq composite index was
temporarily over 5000, it fell to 1000 by the
collapse of the bubble economy.
● The number of the U.S. IT related jobless
people in 2002 amounted to 560,000 people.
7. Companies influence by bubble
● Boo.com lost $188 million in just six months
● GeoCities purchased by Yahoo for $3.57 billion
in January 1999. However Yahoo closed
GeoCities on October 26, 2009.
8. Dot-com bubble of Japan
● The dot-com bubble of Japan burst in 2000.
● The influence of Japan on the collapse of the
information technology bubble centering on the
U.S. was very restrictive.
9. Conclusion
● Excessive bubble will certainly burst.
