The Massive Financial Loss Due to the Dot-Com Bubble Crash Essay

736 Words3 Pages
In the beginning, the Internet was created by the military in 1958 for their own personal purposes. They had no idea how many people would be interested in the Internet, nor how much the Internet could grow into what it is today. The Internet as we know it today did not come about until 1995. Now, it is said that approximately one third of the world's population uses the Internet, and it is still growing. The dot-com bubble spanned from 1995 to 2000 and involved the entire world. The Internet caused an unprecedented growth and speed in business because of how accessible it was to everyone. Many people wanted to become involved because they saw how fast it was growing. One company that made it possible for so many participants to invest was…show more content…
The collapse has been recorded as the single greatest loss in the history of the Internet stock market, with a groundbreaking two-thirds deficit. Surprisingly, the cause of the crash was because of the companies themselves. Companies began to report major losses in revenue because of the "Get Big Fast" mentality. This caused doubt to set in, and people quickly stopped investing. Market value dropped by five trillion dollars, and most companies had to close shop. Andrew Beattie stated that from March 11th, 2000 to October 9th, 2002 the NASDAQ loss compiled to a whopping 78% of value. Soon after the initial fall of NASDAQ came September 11th. People had already lost a lot of their faith in the industry, and the national crisis of 9/11 only added to the crash. People were focused on the catastrophe of 9/11, and it proved to be the last nail in the coffin for the stock market. People were no longer investing. "Many argue that the dotcom boom and bust was a case of too much too fast. Companies that couldn't decide on their corporate creed were given millions of dollars and told to grow to Microsoft size by tomorrow" - Andrew Beattie. Aspects of growth- While many were angry about the dot-com bust, others were grateful. While the crash left many people out of jobs and in debt, the boom proved to be overall helpful. Because of the speed at which technology was progressing it can be argued that the loss was worth the gains.

More about The Massive Financial Loss Due to the Dot-Com Bubble Crash Essay

Open Document