What is the .com bubble? And why did it burst?
In: Economics
back when the internet just started becoming available in everyone’s homes in the late 90’s investors were getting rich getting in early on companies looking for money. Imagine investing in Google, Facebook or Microsoft early on. If you were looking for money, all you had to do was come up with any wacky company idea and out .com at the end of it because investors wanted to be the first to invest in your company because it had .com at the end of it. This rush of investors lead others to jump in on it too inflating the value of your company. The early 2000’s recession burst the bubble when people started becoming more wary of where they put their money and started looking at earning statements of them and realized these companies weren’t actually doing anything so they rushed to pull their money out.
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