Dot Com

The featured article “The Dot-com Bubble”, by the author, Jesse Colombo at http://www.stock-market-crash.net/dot-com-bubble/, emphasizes on the economic crises as related to the Dot-com bubble. The article at the beginning mainly highlights the emerging trend in the use of the internet during early 1990’s.

The use of the computer was no longer limited to the user friendly community whereas sooner it turned out to be one of the business tool, as the applications related to accounting to tax preparation and further extending more to word processing were being designed. Microsoft, was the software which was installed on every computer. Computer hardware was a product which could be a least differentiated product from the competitors to those company who work on the business of computer hardware, therefore with the span of time , during the era of 1990;s more of the focus was being given to computer software. Companies who were designing software were therefore earning high margins of profits as compared to hardware companies. These software companies were in a shielding state as they were backed up by the patent rights. Such strong stock market positioning of these software companies motivated the startups, hence most of the students started small scale software startups, with least operational costs as the employee cost to be equivalent to “pizza” or soda”. But later on they provided their employees with company shares when they were financed by the ventures who found it to be profitable to invest on startups and turning them to be public. Most of these software companies were being established at Silicon Valleynear San Francisco. At the middle of 90’s era the technology stocks NASDAQ index led the investors to be concentrated with wealth. At the start of 1990’s when the internet evolved it was mainly for military use but during the mid of the era it was a popular mean of socializing among people. “America online”, saw its emerging trend as it saw that the...