What do you use the Internet for? If you're like anyone else, it serves purposes such as entertainment and communication. It hasn't been able to reach this point without growth and history, the latter of which is especially interesting. The dot-com bubble is often regarded as one of the most important events in economic history. Here are a few details, provided by Bob Jain, to help give you a better understanding of the event at hand.
During the late 90s, there was a tremendous uptick in terms of Internet usage, which caught the attention of investors around the world. Technology in general seemed to be on an upswing, and the World Wide Web was at the forefront. Investments were made in Internet-based companies, as investors believed that these would be the future. Many Internet startups were created and they drew in those that would like to invest.
It wasn't until 2000 that the dot-com bubble began to weaken. According to Robert Jain, it was during this year that dot-coms and other startups saw the most returns. This wouldn't last, though, as profits started to slip over the course of time. Instead of spending time researching and mapping out plans, investors were so focused on making money that they would enter any venture they deemed unworthy. This wouldn't pay off, as numerous losses were reported in 2001.
What are some of the greatest causes linked to the dot-com bubble bursting? It can be argued that impatient mindsets played their part, seeing as how startup companies were expected to grow with money alone. It's also worth noting that a number of the startups in question simply weren't profitable enough to last anyway. Problems like these aided in the aforementioned bubble bursting, which serves as a cautionary tale for others to follow.
With this information in mind, one has to wonder what can be done in order to prevent another dot-com bubble to burst in the future. Perhaps the most helpful way to do so is by learning about investments ahead of time. Research the companies that you'd like to put money into so that you eventually see greater returns. If you take this information into account, you won't make the mistakes that others made in the past.
During the late 90s, there was a tremendous uptick in terms of Internet usage, which caught the attention of investors around the world. Technology in general seemed to be on an upswing, and the World Wide Web was at the forefront. Investments were made in Internet-based companies, as investors believed that these would be the future. Many Internet startups were created and they drew in those that would like to invest.
It wasn't until 2000 that the dot-com bubble began to weaken. According to Robert Jain, it was during this year that dot-coms and other startups saw the most returns. This wouldn't last, though, as profits started to slip over the course of time. Instead of spending time researching and mapping out plans, investors were so focused on making money that they would enter any venture they deemed unworthy. This wouldn't pay off, as numerous losses were reported in 2001.
What are some of the greatest causes linked to the dot-com bubble bursting? It can be argued that impatient mindsets played their part, seeing as how startup companies were expected to grow with money alone. It's also worth noting that a number of the startups in question simply weren't profitable enough to last anyway. Problems like these aided in the aforementioned bubble bursting, which serves as a cautionary tale for others to follow.
With this information in mind, one has to wonder what can be done in order to prevent another dot-com bubble to burst in the future. Perhaps the most helpful way to do so is by learning about investments ahead of time. Research the companies that you'd like to put money into so that you eventually see greater returns. If you take this information into account, you won't make the mistakes that others made in the past.
About the Author:
If you would care to discover more about finance in general, contact Bob Jain today.. Free reprint available from: Bob Jain & The History Of The Dot-Com Bubble.
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