2007-02-05 23:17:39 · 3 answers · asked by Brendon B 2 in Business & Finance ➔ Other - Business & Finance
When the internet first came to prominence - lots of companies that were little more than websites piggybacking their businesses on existing bricks and mortar companies. They then subsequently went to the markets and raised lots of money by issuing equity (shares).
However the companies that were being piggybacked upon realised that they could just build their own websites because in reality the internet was just another distribution channel to them.
The shares of the internet companies then went into freefall when the frankly ridiculous valuations that were being given to them collapsed - and that's your .com crash.
2007-02-06 00:17:19 · answer #1 · answered by LongJohns 7 · 0⤊ 0⤋
when there was large stock market decrease in 2000/2001, which in particular hit very bloated, extremely overvalued and overpriced relatively new technology companies, referred to at dot coms
2007-02-06 00:13:52 · answer #2 · answered by jim06744 5 · 0⤊ 0⤋
read this:
http://en.wikipedia.org/wiki/Dot_com_crash
2007-02-05 23:25:03 · answer #3 · answered by alphacharlie 3 · 0⤊ 0⤋