![]() Of the 79 companies that went public in 2001, none doubled on the first day of trading. When the dot-com crash followed, the IPO trend shifted dramatically: Number of IPOs by Year A bubble is only a bubble when it gets popped, up to that. ( Nasdaq: INTC) became the first "new economy" companies - and the first Nasdaq issuers - to be included in the Dow Jones Industrial Average. Then again, the Emperor of Japan’s palace grounds were worth more than the whole of California’s real estate in their property bubble. The Nasdaq rose 290% from January 1997 to March 2000. Companies that barely had business plans went public. People quit their jobs to become day traders. The tech-heavy Nasdaq index has closed at a record high, surpassing a level it last reached in 2000 at the height of the dot-com bubble. Hype over a new industry caused investors to overlook traditional metrics like the price-to-earnings (PE) ratio, debt/equity ratio, and amount of free cash flow. The Internet commercialized in 1995, creating a speculative bubble from 1997 to 2000. Dot-Com Bubble Set Up Dot-Com Crash of 2000-2002 What triggered this massive loss of wealth is one of the most famous bubbles in stock market history: the dot-com bubble of 1997-2000. Nasdaq's March 2000 high wasn't seen again for 15 years, until the index closed at 5,096 on April 24, 2015. ![]() (The Dow Jones and S&P 500 also suffered, albeit less intensely - down 27.38% and 43.19%, respectively.) The dramatic fall of a tech-heavy Nasdaq Composite sheds insight into how this stock market crash went down.įrom a March 10, 2000, high of 5,048.62, the index tumbled to 1,139.90 on Oct. In Part 2 of our stock market crash history series, we examine the dot-com crash - a two-year market downturn that eviscerated more than $5 trillion in market value between March 2000 and October 2002. The second in our series documenting the greatest Wall Street crashes of all time. Leave a Reply Click here to cancel reply.
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