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The Dot-Com Bubble Kevin Rose David Stark Josh Brannon Matt Meikle Peak of the Bubble Years Leading up to Bubble … Al Gore’s “Information Superhighway” craze (early 1990’s) Not Internet focused in the beginning Years Leading to Bubble .. Speculative Bubble covering 1995-2001 Rapidly rising stock prices Widely available venture capital E-Business Attraction Low interest rates – low start up costs. Connecting business relatively cheaply. Less caution toward LARGE investments. New business models – operating in debt. Aftermath of the Dot-Com Bubble Several Communication companies sold their assets for cash or filed for bankruptcy WorldCom Overstated profits by billions Stock Crashed Filed largest corporate bankruptcy in U.S. history North Point Communications, Global Crossing, JDS Uniphase, XO Communications, and Covad Communications Aftermath of the Dot-Com Bubble Many dot-coms ran out of capital and were acquired or liquidated Several companies and executives accused or convicted of fraud for misuse of shareholders money Citigroup and Merrill Lynch fined millions by SEC for misleading investors Huge layoffs of technology experts Other results The real estate craze that followed the burst of the bubble. People felt inclined to invest in things less risky. The Re-Build Resulted in falling back on orthodox business /or business models. To this day, the number of BILLIONS of dollars lost has not been determined. Market Schooling Appreciating new ideas rather than focusing on the process of outcomes = bad. Don’t act blindly when investing large amounts of money.
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