Asked by Christopher Thomas on May 07, 2024
Verified
The Internet bubble of 1995-2000 was caused by the belief that the stock prices of Internet companies:
A) were justified by fundamentals.
B) would keep rising.
C) were probably temporary but certain.
D) all of the above
Internet Bubble
A period, typically in the late 1990s, characterized by rapid expansion and inflation of the value of internet-based companies, leading to a market crash.
Stock Prices
The current market price of a share of a company's stock, determined by supply and demand in the stock market.
Fundamentals
Basic principles or underlying factors that form the foundation or base of any subject or discipline.
- Pinpoint the features and triggers of the Internet bubble that occurred between 1995 and 2000.
Verified Answer
KD
Konner DeedsMay 09, 2024
Final Answer :
B
Explanation :
The Internet bubble was caused by the belief that the stock prices of Internet companies would keep rising indefinitely, even without any underlying fundamental justification. This led to speculative investing and inflated valuations, ultimately resulting in a market crash in 2000.
Learning Objectives
- Pinpoint the features and triggers of the Internet bubble that occurred between 1995 and 2000.