Ecommerce Crash 2000

Intro
In this report we will discuss the E-commerce bubble burst and its subsequent crash in March 2000. We will examine what happened during this time and what caused the bubble to burst. In order to understand these events, it is important to firstly comprehend what Dot-com is and its purpose. Dot-com can be defined as a company whose main market is on-line trading. An example is Amazon who doesn’t operate off-line. We will use case studies such as Pet-com and companies such as Amazon to illustrate this. We will discuss in our opinions, the long-term effects of the 2000 crash and how it has affected investor’s confidence.

In 1997 online trading was beginning to become widely recognised and by 1999
E-commerce was worth £2bn in the UK. More and more people started to have access to the Internet. It is important to know what happened to E-commerce in March 2000. Before the crash, the share prices of Dot-com stocks were priced too high and although investors knew about this, t...