what was "the 2001 dot com bust" ?

Discussion in 'General Chat' started by chewie49, Jul 24, 2008.

  1. #1
    I've read a lot about that but they don't explain what was it.

    I only know it was in the fall of 2001.

    I'd appreciate your information.

    Kindest Regards,

    Chewie.
     
    chewie49, Jul 24, 2008 IP
  2. ThisIsOli

    ThisIsOli Active Member

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    #2
    A lot of internet firms went into public trading so people could buy shares in them to raise capital, for a short time it was a perfect way to make money, people were buyinng shares in internet companies left right and centre and making huge profits.

    Eventually however the companies were selling shares for up to 20x their actual value, share holders realised this and began to panic sell before they became worthless and when one person panic sells EVERYONE panic sells.

    These spirals killed off a couple of huge internet companies, and when they went down other share holders in other companies panicked too. the majority of major internet only startups went bust in 2001.

    A similar thing is happening in the UK and US at the moment offline, everything is valued at more than its worth, causing a depression which will take down a lot of reputable companies.
     
    ThisIsOli, Jul 24, 2008 IP
  3. chewie49

    chewie49 Well-Known Member

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    #3
    I understand.

    Which companies were mainly involved on this?
     
    chewie49, Jul 27, 2008 IP