The internet bubble was a speculative bubble that developed following the popularization of the world wide web in 1991. The mania was part of a broader tech bubble that led to massive over-investment in telecoms and IT infrastructure.
How did the Internet bubble affect institutional investors?
Many investors, including institutional investors, were uncertain on how to value new companies with business models built on online activities. The eventual popping of the internet bubble was heavily influenced by the actions of the Federal Reserve and Alan Greenspan in particular.
What would happen if the Internet bubble crashed in 1999?
Investors would see a sudden crash by 1999 that would ruin several Internet companies for good. This would be known as the rise and fall of the Internet bubble.
Is the Internet bubble on the NASDAQ stock market?
The significant presence of Internet-related companies on the Nasdaq Stock Market makes it an appropriate place for identifying the contours of the Internet Bubble. Nasdaq closing values reveal a thirty-month period in which the composite index tripled and then returned.
