I heard about Dot Com and Enron Bankruptcy in almost all my classes. We discussed Enron bankruptcy, some accounting issues and unethical behavior that led to bankruptcy. We also discussed how the market crashed in 2000. However, I didn’t really know what exactly happened with Dot Com Industry. Professor outlined five stages of the Dot Com to Dot Bomb process:
1. An innocent beginning.
2. Boom!
3. Insanity!
4. Bust
5. The crawl back to sanity.
Internet and networking was really new for people. People were paying money for having an email address. The industry was changing very fast. Other companies started providing services for free for which other companies still were charging. A lot of companies went public. The equity on the companies in Internet sector and related fields rose rapidly. However, It was all based on fiction. Some people made a lot of money; some investors lost billions of dollars. As a result, public lost confidence in the nations’ securities markets. In 2002 Sarbanes Oxley Act was issued.
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