![]() A legislative act in 1997 had cut tax liability on capital gains, making investors more willing to take on speculative bets in the markets. It was also a period of easy money in the United States. New start-ups emerged every other day, with big money quickly flowing to companies that were seen as taking their space in the Information Age.īasically, any company with a dot com (.com) extension or suffix in its name was capable of attracting huge financial and speculative backing. Naturally, the commercialisation of the internet quickly took centre stage. A ‘new world order’ was being launched, and internet penetration and adoption picked up pace from 1993 when browsers available to the public were launched. In 1989, the World Wide Web was launched, and by mid-1991, it went live to the public. It would take a while for investors and other market participants to accept that companies can indeed generate revenues and profits on the internet. The plunge led to the collapse of numerous technology and internet-based companies, the majority of which had leveraged the internet to offer shopping, communication, and news delivery services. The growth and adoption of the internet drove speculation on internet-related stocks from 1995 to 2000, with the Nasdaq rising over five fold, before tumbling over 80% by the last quarter of 2002. ![]() Dubbed the Internet bubble, the dot com bubble burst of 2000 is one of the most significant stock market crashes in recent history.
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