1. The DotCom Bubble
in California
Week 12

2. Contents
• Introduction
• Background
• A motion of a stock price
• Influence of sudden fall
• Influence on the world
• Influence of Japan
• Conclusion

3. Introduction
• The DotCom bubble occurred in the 1990s
in the last stage.
• The unusual high tide of the actual-
demand investment and the equity
investment to an Internet related company
occurred.
• The bubble burst in 2001.

4. Background
• Possibility of e-commerce was realized in
the 1990s in the last stage.
• Many companies observed the Internet
industry.

5. A motion of a stock price
• The stock price was rising greatly from 1990
to 2000.
• People praised it as new economy and
accelerated management of the venture
business.
• The stock price slumped first in the 2000s by
interest rate raise of the Board of Governors
of the Federal Reserve System or generating
of coordinated terrorist attacks.

6. Influence of sudden fall
• In the United States, jobless people
amounted to 560,000 people. (2002)
• Some companies escaped bankruptcy and
made service establish.

7. Influence on the world
• The economy of India or Ireland grew
greatly.
• Although the IT boom occurred and the
stock price of the company continued the
fall from the rise in China, there were few
economical blows.

8. Influence of Japan
• Companies, such as yahoo and Softbank,
prospered.
• The company of many OS relation was
withdrawn.
• Although the collapse of the ‘DotCom
bubble' economy was carried out in 2003,
economy was not almost affected.

9. Conclusion
• Many people lost the job by collapse of the
Internet bubble.
• However, not every country had the
economical damage.

10. References
• DotCom Mania: The Rise and Fall of Internet Stock
Prices
• http://onlinelibrary.wiley.com/doi/
10.1111/1540-6261.00560/abstract
• Does austrian business cycle theory help explain the
dot-com boom and bust?
• http://link.springer.com/article/10.1007/s12113-003-1019-
x