![]() However, the bubble burst in 2002, and stock prices fell 78%. The NASDAQ saw a steady increase in its value during the 1990s, peaking at nearly $8,000 in 2000. Created with data from Macrotrends - StudySmarter Originals NASDAQ Composite Index during the dot-com bubble. ![]() Figure 1 below shows the growth of the NASDAQ from 1997 to 2002 when the bubble burst.įigure 1. The upswing in the market and the change in interest in the new internet industry, media attention and investor speculation on profits from companies with a '.com’ domain in their internet address acted as the triggers for this market change.Īt that time, these internet-based companies experienced exponential growth in their stock prices of over 400%. The emergence of the dot-com bubble can be traced to the introduction of the World Wide Web in 1989, which led to the establishment of the internet and its technology companies in the 1990s. ![]() It was an economic bubble that affected the prices of stocks in the technology industry. The dot-com bubble refers to the stock market bubble created due to speculation in dot-com or internet-based companies between 19.
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