IT bubble crash

1. Conferred By:-
Ms.Harleen Kaur
Mr. Gaurav Kumar
Submitted To : RVM Finishing School
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+91-9550812082 www.rvmfinishingschool.com

2. AGENDA
Economic & Market Condition Before Bubble
Crash
Dot Com Bubble Market Crash 2000
Main Causes Attributed To This
Effect On Economy & Market
Reform After This Panic Situation
Aftermath
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3. Economic And Market Condition
Before Bubble Crash
• THE YEARS 1992-2000 WERE FAVOURABLE FOR STOCK MARKET
• DOT COM BOOM WAS IN FULL EFFECT
• Global stock markets resumed their previous bull market
trend, led by computer and other technology-related stocks
that were traded on the new electronic NASDAQ stock
exchange.
• From 1996 to 2000, the NASDAQ stock index exploded from
600 to 5,000 points.
• At the peak of the dot-com bubble in 1999, it was said that
a new millionaire was created every 60 seconds in Silicon
Valley
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4. Dot Com Bubble Market Crash
2000
 The Dot Com Bubble Burst is what caused the 2000 stock
market crash
 When: March 11, 2000 to October 9, 2002
 Where: Silicon Valley (for the most part)
Year NASDAQ
INDEX
March,2000 5132.52
Sep,2000 4234.33
Jan,2001 2291.86
Oct,2002 1108.49
 Percentage Lost From Peak to Bottom: The NASDAQ Composite lost 78%
of its value as it fell from 5132.52 to 1108.49
 The 2000 stock market crash resulted in a loss of almost $8 trillion of wealth.
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5. Dot com Bubble Market Crash
5132.52
NASDAQ
4234.33
2291.86
1108.49
6000
5000
4000
3000
2000
1000
0
Mar-200 Sep-00 Jan-01 Oct-02
NASDAQ
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6. Main Causes Attributed To This
Main reason is corporate corruption
illegal means and frauds by MNC’s
serious loopholes and the debts were not shown
in accounts of MNC’s
overvaluation of the stocks and the dot com
bubble burst
 numerous accounting scandals came to light
 investment bankers had the research firms put not
so honest ratings on the stocks
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7. Effect On Economy & Market
In 2001, the U.S. economy experienced a post
dot-com bubble recession
The 2000 stock market crash resulted in a loss
of almost $8 trillion of wealth.
Hundreds of thousands of technology
professionals lost their jobs and, if they had
invested in tech stocks, lost a significant
portion of their life savings.
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8. Reform After This Panic
Situation
Formats followed by entities were made more
transparent.
Rules and regulations were framed regarding
trading online.
Laws were enforced regarding breach of any
rule.
Disclosure of details were made manadatory
for companies.
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9. Aftermath
The stock market crash of 2000 is regarded as
one of the biggest crashes in the history of
stock trading, the others being in the year
1987 and 1929
All in all, reforms were introduced to stabilize
the market and overcome the deficit.
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10. REGARDS:
RVM GROUP OF ANALYSTS
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