Glossary entry (derived from question below)
English term or phrase:
high tech bubble
English answer:
temporary heated market for shares in high-tech firms (esp. Internet start-ups)
Added to glossary by
Sophia Jusoff
Apr 20, 2005 17:06
19 yrs ago
1 viewer *
English term
high tech bubble
English
Bus/Financial
Business/Commerce (general)
Because our share price has declined since the high-tech bubble of a few years ago, our company has a large number of outstanding stock options.
I need to know what "high tech bubble" is exactly.
I need to know what "high tech bubble" is exactly.
Responses
Responses
+4
29 mins
Selected
temporary heated market for shares in high-tech firms (esp. Internet start-ups)
bubble meaning that it would pop, ie burst; that of course wasn't necessarily the case. If not for the Microsoft antitrust suit, it might not have happened, ie the bubble may not have burst the way it did. But that, that is an opinion...
It simply means that it was a short-term phenomena, the interest and share valuations in high-tech firms.
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Note added at 31 mins (2005-04-20 17:38:06 GMT)
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the Confidence was supposed to be 5, but then with this hi-tech webpage, it changed itself to 3 (unsure)
It simply means that it was a short-term phenomena, the interest and share valuations in high-tech firms.
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Note added at 31 mins (2005-04-20 17:38:06 GMT)
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the Confidence was supposed to be 5, but then with this hi-tech webpage, it changed itself to 3 (unsure)
4 KudoZ points awarded for this answer.
Comment: "Thank you all. "
+7
3 mins
rapid growth in the number high technology companies of a few years ago
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Note added at 5 mins (2005-04-20 17:12:21 GMT)
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as always in economics very fast growth is usually accompanied by a period when growth is very slow or even negative - hence the word bubble - bubbles can burst
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Note added at 11 mins (2005-04-20 17:18:07 GMT)
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because of this tendency, whenever an economy or a sector of the economy starts expanding rapidly, people are always concerned that once the rapid growth stops, the bubble will burst and problems such as mass layoffs and bankrupcy will set in
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Note added at 5 mins (2005-04-20 17:12:21 GMT)
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as always in economics very fast growth is usually accompanied by a period when growth is very slow or even negative - hence the word bubble - bubbles can burst
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Note added at 11 mins (2005-04-20 17:18:07 GMT)
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because of this tendency, whenever an economy or a sector of the economy starts expanding rapidly, people are always concerned that once the rapid growth stops, the bubble will burst and problems such as mass layoffs and bankrupcy will set in
Peer comment(s):
agree |
Tony M
: ... and in the high-tech industry in general
4 mins
|
agree |
juvera
4 mins
|
agree |
Elizabeth Lyons
16 mins
|
agree |
Robert Donahue (X)
1 hr
|
agree |
RHELLER
: right now - we speak of the real estate bubble (field can change)
1 hr
|
housing market boom on the other side of the pond :)
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agree |
Alfa Trans (X)
11 hrs
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agree |
SirReaL
13 hrs
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neutral |
Charlie Bavington
: strictly speaking, it was more the rapid growth in share price, which then attracted new entrants of course (economic theory tells us to expect this), but the bubble starts with the stock price, not the number of companies per se....
17 hrs
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well, you could take that argument further, to say that the stock price depends on factors X,Y,Z and it is in fact changes in those factors which start off the process. I'm just trying to find a simple (yet correct) answer for the asker here.
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neutral |
Refugio
: agree with Charlie, it is not just rapid growth but unsustainable and unrealistically rapid growth, devil take the hindmost
2 days 11 hrs
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+3
7 hrs
hyper-accelerated unsustainable speculative growth in the high-tech industry
....particularly in the dot.com companies. Bubbles are created in markets by irrational speculation and when new money fails to come in to support continue the growth the bubble bursts, resulting in weak companies disappearing and the strong surviving (Amazon, Yahoo, Ebay).
Peer comment(s):
agree |
SirReaL
5 hrs
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thanks, Mikhail
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agree |
Charlie Bavington
: yep, good description.
9 hrs
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thanks, Charlie
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agree |
Refugio
2 days 3 hrs
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thanks, Ruth
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