IT bubble Crash

www.rvmfinishingschool.com

Dot Com Bubble Market crash2000

Conferred By:-Ms.Harleen Kaur

Mr. Gaurav KumarSubmitted To : RVM Finishing School

www.rvmfinishingschool.com+91-9550812082

http://www.rvmfinishingschool.com/


AGENDA

Economic & Market Condition Before Bubble Crash

Dot Com Bubble Market Crash 2000Main Causes Attributed To ThisEffect On Economy & MarketReform After This Panic SituationAftermath


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


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)

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.

Year NASDAQ INDEX

March,2000 5132.52Sep,2000 4234.33Jan,2001 2291.86Oct,2002 1108.49


Dot com Bubble Market Crash

Mar-200 Sep-00 Jan-01 Oct-020

1000

2000

3000

4000

5000

6000

5132.52

4234.33

2291.86

1108.49

NASDAQ

NASDAQ


Main Causes Attributed To This

Main reason is corporate corruptionillegal means and frauds by MNC’sserious loopholes and the debts were not shown in accounts of MNC’sovervaluation 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


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.


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.


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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IT bubble Crash

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