bursts versus Wall Street

Essay by tnsylmzUniversity, Bachelor'sA, November 2008

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Innovation of the internet opened the door of a new world for the marketing and the business sectors. Until 1985's the internet has been used for daily communication method such as e-mails and for the governmental communication systems such as Arpanet.

The introduction of the internet brought an entirely new culture to our world in the mid 1990s. The time from 1995-2001 has been called the dot-com boom or the dot-com bubble, a time when countless companies got their big break on the internet, although their success may have been short-lived. The combination of rapid increasing stock prices and availability of venture capital funding allowed for new corporations to enter the market.[2: September 2008,]

The dotcom bubble started without the World Wide Web, and indeed in the beginning it didn't even recognize the Internet as important. Once Al Gore began talking about the "information superhighway" in the early 1990s, however, the "big end of town" - Hollywood, Silicon Valley, telecommunications carriers, cable companies, and media conglomerates, all began investing.

Several factors combined to cause the dot-com bubble, which is usually defined as the period of investment and speculation in Internet firms which occurred between 1995 and 2001. 1995 marked the beginning of a major jump in growth of Internet users, who were seen by companies as potential consumers. As a result, numerous Internet start-ups were birthed in the mid to late 1990s. These companies came to be referred to as "dot-coms," after the .com in many web addresses.[3: Ian, Peter, the Dot. Com Bubble]

Early 1990's companies were on demand and most of them was extremely overvalued. The low interest rates in 1990's increase the start-up capital, which has allowed many entrepreneur have chance to be in market. The most of...