Dot.Com Collapse

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Dot.Com Collapse

By | March 2011
Page 1 of 13
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FIN 201
Global Banking
Dr. Elias Boukrami

Josh Gross
Mattia Lukas
1 December, 2009

Contents

Contents
1) Terms of reference2
2) Methods and Procedure2
3) Findings3
3.1) Introduction to the Dot.Com Phenomenon3

3.2) The New Economy3

3.3) What Blew the Bubble?4

3.3.1) Idea that Tech Shares would only go up4

3.3.2) Venture Capitalists5

3.3.3) Profit Motive in Funds6

3.3.4) Looser Exchange Membership Rules7

3.3.5) Summary on the Causes of the Bubble7

3.4) The Theory of Crises - Bubble Theory8

4) Conclusion9
5) Bibliography9
6) Appendices11

1) Terms of reference

This report has been compiled by Josh Gross and Mattia Lukas. The report is for Dr. Elias Boukrami and is due on the 1st December, 2009 as a part of the elective module FIN 254 Global Banking. The report analyses the Dot.com Phenomenon from its early signs to its ultimate collapse.

2) Methods and Procedure

This report is the result of nine weeks of investigation and discussion between the two members. The resources used are principally secondary sources from previous investigations made by economists and financial analysts. Most of the information and data within the report has been gathered from a range of secondary sources such as books, respected financial websites, and academic journals. Please refer to the Bibliography and Appendices for a complete list of sources.

3) Findings

3.1) Introduction to the Dot.Com Phenomenon

The term dot.com was introduced in late 1998 by the Wall Street Journal, which reported that since the Internet was transferred from the National Science Foundation to private companies such as Network Solutions Inc., the “.com” suffix was already belonging to more than two million commercial web addresses. In only a few months, by late 1998 the suffix “.com” was the pre-eminent domain for doing cyber business (Simpson & Simons, 1998). The conceptual definition for...