1. Conferred By:-
Ms.Harleen Kaur
Mr. Gaurav Kumar
Submitted To : RVM Finishing School
www.rvmfinishingschool.com
+91-9550812082 www.rvmfinishingschool.com
2. AGENDA
Economic & Market Condition Before Bubble
Crash
Dot Com Bubble Market Crash 2000
Main Causes Attributed To This
Effect On Economy & Market
Reform After This Panic Situation
Aftermath
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3. Economic And Market Condition
Before Bubble Crash
• THE YEARS 1992-2000 WERE FAVOURABLE FOR STOCK MARKET
• DOT COM BOOM WAS IN FULL EFFECT
• Global stock markets resumed their previous bull market
trend, led by computer and other technology-related stocks
that were traded on the new electronic NASDAQ stock
exchange.
• From 1996 to 2000, the NASDAQ stock index exploded from
600 to 5,000 points.
• At the peak of the dot-com bubble in 1999, it was said that
a new millionaire was created every 60 seconds in Silicon
Valley
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4. Dot Com Bubble Market Crash
2000
The Dot Com Bubble Burst is what caused the 2000 stock
market crash
When: March 11, 2000 to October 9, 2002
Where: Silicon Valley (for the most part)
Year NASDAQ
INDEX
March,2000 5132.52
Sep,2000 4234.33
Jan,2001 2291.86
Oct,2002 1108.49
Percentage Lost From Peak to Bottom: The NASDAQ Composite lost 78%
of its value as it fell from 5132.52 to 1108.49
The 2000 stock market crash resulted in a loss of almost $8 trillion of wealth.
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6. Main Causes Attributed To This
Main reason is corporate corruption
illegal means and frauds by MNC’s
serious loopholes and the debts were not shown
in accounts of MNC’s
overvaluation of the stocks and the dot com
bubble burst
numerous accounting scandals came to light
investment bankers had the research firms put not
so honest ratings on the stocks
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7. Effect On Economy & Market
In 2001, the U.S. economy experienced a post
dot-com bubble recession
The 2000 stock market crash resulted in a loss
of almost $8 trillion of wealth.
Hundreds of thousands of technology
professionals lost their jobs and, if they had
invested in tech stocks, lost a significant
portion of their life savings.
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8. Reform After This Panic
Situation
Formats followed by entities were made more
transparent.
Rules and regulations were framed regarding
trading online.
Laws were enforced regarding breach of any
rule.
Disclosure of details were made manadatory
for companies.
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9. Aftermath
The stock market crash of 2000 is regarded as
one of the biggest crashes in the history of
stock trading, the others being in the year
1987 and 1929
All in all, reforms were introduced to stabilize
the market and overcome the deficit.
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