By Jason McDonald It seems like, throughout history, there are tremendous periods of growth followed by periods of drought. For proof of t...
It seems like, throughout history, there are tremendous periods of growth followed by periods of drought. For proof of this, one needn't look any further than the American event known as the dotcom crash, which started in the mid-90s and lasted up to the early aughts. What, exactly, is the dotcom crash, and why is it remembered to this day? Here are a few questions about the event in question that the likes of Robert Jain can answer.
"What, exactly, was the dotcom crash?" The dotcom crash started in 1995, which was when a number of households started to purchase Internet that they could use at home. With this technological development came a focus on businesses that could be built around said development. As more and more "dotcom companies" formed, stock prices increased in a period of affluence. As such names as Bob Jain will tell you, this period was only temporary.
"What caused the dotcom crash?" When it comes to the causes of dotcom crash, you have to look at the individuals responsible for it. First, there were many online business owners that hoped they would be able to grow by leaps and bounds in short order. Second, investors were quick to put money into said businesses. This combination of actions didn't pan out, as these companies would end up folding, resulting in substantial financial losses for all parties involved.
"How can I avoid becoming part of a future crash?" Even though another event at the level of the dotcom crash is unlikely to happen, the possibility always exists. Fortunately, you can avoid becoming part of it if you know how to approach potential businesses to invest in. Research is perhaps the most important endeavor, as this will allow you to learn about how companies operate, whether in regard to profits, losses, or what have you. The Internet has made it easy to find such information, so do your homework before making any investments.
When it comes to financial disasters throughout history, the dotcom bubble crash is among the most notable. It showed that no matter how much an industry grows, there is a chance that success can come tumbling down. Even though this stands as a historical event, it is also a warning to business owners and potential investors alike. By learning from the mistakes of the past, you can make smarter decisions in the future.
"What, exactly, was the dotcom crash?" The dotcom crash started in 1995, which was when a number of households started to purchase Internet that they could use at home. With this technological development came a focus on businesses that could be built around said development. As more and more "dotcom companies" formed, stock prices increased in a period of affluence. As such names as Bob Jain will tell you, this period was only temporary.
"What caused the dotcom crash?" When it comes to the causes of dotcom crash, you have to look at the individuals responsible for it. First, there were many online business owners that hoped they would be able to grow by leaps and bounds in short order. Second, investors were quick to put money into said businesses. This combination of actions didn't pan out, as these companies would end up folding, resulting in substantial financial losses for all parties involved.
"How can I avoid becoming part of a future crash?" Even though another event at the level of the dotcom crash is unlikely to happen, the possibility always exists. Fortunately, you can avoid becoming part of it if you know how to approach potential businesses to invest in. Research is perhaps the most important endeavor, as this will allow you to learn about how companies operate, whether in regard to profits, losses, or what have you. The Internet has made it easy to find such information, so do your homework before making any investments.
When it comes to financial disasters throughout history, the dotcom bubble crash is among the most notable. It showed that no matter how much an industry grows, there is a chance that success can come tumbling down. Even though this stands as a historical event, it is also a warning to business owners and potential investors alike. By learning from the mistakes of the past, you can make smarter decisions in the future.
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