S1200114 Hiroaki Kato

THE DOT-COM BUBBLE IN

CALIFORNIA

  Dot-com Bubble   What was the Dot-com bubble   Soaring stock   Free spending   The Bubble bursts   Fall In   Worldwide Influence   Japanese Influence   Aftermath   References

CONTENTS

  The Dot-com bubble was a speculative bubble covering

  roughly 1995-2000 during which stock markets in

  industrialized nations saw their equity value rise   rapidly from growth in the more recent Internet sector

  and related fields.

DOT-COM BUBBLE

  The dot-com bubble was a stock market bubble which popped to near-devastating effect in 2001. It was powered by the rise of Internet sites and the tech industry in general, and many of these companies went under or learned some valuable lessons when the bubble finally burst. Many investors lost substantial sums of money on the dot-com bubble, helping to trigger a mild economic recession in the early 2000s.

WHAT WAS THE DOT-COM BUBBLE

  The term may be used with certainty only in retrospect when share prices have since crashed.

  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. Typically many companies thus become grossly overvalued. When the bubble "bursts," the share prices fall dramatically, and many companies go out of business

SOARING STOCK

 According to dot-com theory, an Internet company survival depended on expanding its customer base as rapidly as possible, even if it produced large annual losses.

 For instance Amazon was spending on expanding customer base and alerting people to its existence Google was busy spending on creating more powerful machine capacity to serve its expanding search engine.

FREE SPENDING

  The bursting of the bubble may also have been related to the poor results of Internet retailers following the 1999 Christmas season. This was the first unequivocal and public evidence that the get-rich-quick Internet strategy was flawed for most companies. These retailers result were made public in March when annual and quarterly reports of public firms were released.

THE BUBBLE BURSTS

  A lot of venture companies related.

  Google and Amazon carry through.

  September 11, 2001, United States rushed into a serious recession.

FALL IN

 Ireland achieved this economic growth that was called

 ÅgMiracle of KerutoÅh.

 Chinese IT has not developed, so it wasn’t damaged hard.

WORLDWIDE INFLUENCE

 Japan rise hanging cause of United States of Bubble.

 However the bubble is not so long.

 The influence of burst of economic bubble on Japan was extremely limited.

JAPANESE INFLUENCE

  More in-depth analysis shows that 50% of the dot-coms

  companies survived through 2004.

  It is safe to assume that the assets lost from the Stock

  Market do not directly l ink to the closing of f irms.

  More importantly, however, it can be concluded that

  even companies who were categorized as the "small

  players" were adequate enough to endure the

  destruction of the financial market during 2000-2002.

AFTERMATH

  http://en.wikipedia.org/wiki/Dot-com_bubble#Bubble_growth

  http://en.wikipedia.org/wiki/United_States_Cons titution_and_worldwide_influence

REFERENCES