Taking you back in time to 1994- the year in which it all started. Internet companies becoming more popular more than ever and people started believing internet was the next big thing. While It was just the starting phase of internet and companies like yahoo and google were prime examples of internet companies which made everyone interested to invest in other such companies which were likely to become the next google.

Tech companies wanted to make desktop a household commodity to increase their consumer base and attract new customers.

People saw growth of internet-based companies like google and yahoo and invested their money into them. Buying shares at premium and oversubscribing the IPO of any internet-based company.

As internet was the new thing in trend people were spending a lot of their time surfing different websites on internet. This increased the footfall on websites. Also, people explored different websites and signed up to become a member of that company. They used to browse through the website entirely but not buy the product over internet. General public was still using traditional methods over the newly developed internet-based online shopping. This made all the potential customers a window shopper, a potential customer who would visit the website and explore the range of products but not buy the product over their platform.

The major reason behind this was that the customers who used internet did not have confidence in the company or the internet itself for sharing their any card or personal details . The news about frauds and scams happening around made them loose their confidence in the virtual world.

People who invested their money into these internet-based companies saw no growth in their funds but they were expecting this to change once the customers gain confidence in online shopping and get adjusted to this new method.

By the year 2001 USAs financial market collapsed and every other country had invested their money in U.S. financial market so there were losses at a global level.

This happened because of the collapse of the WTC (World Trade Centre). US had been attacked by terrorists. This act was thought to be challenging the supremacy of the United States. This was the time when people realized that USA is not going to take this lightly and would retaliate.

There might be chances of a war and people know that very well that in a war situation economic growth is not the priority of the government and businesses are the ones who suffer the most. So, people who had invested in the tech/internet companies wanted to pull their money back before anyone else does it.

Now the stock which was priced at $10 in the year 1995 had went up to $200 by the time WTC has collapsed. Every investor who had invested in companies like these wanted to sell their share at $200 at their earliest and this was the mindset of most of the investors who had invested in these companies. This led to a massive increase in the supply of shares of the internes-based companies and an immense decrease in the share prices of these companies. Many of the companies filed for bankruptcy while all this happened. This was later known as the dot com bubble or the internet bubble.

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