Bubbles & Global Trends An economic bubble is trade in high volumes at prices that are considerably at variance with intrinsic values. It could also be described as a trade in products or assets with inflated values. The cause of bubbles is unknown, however many explanations have been suggested, it has been recently shown that bubbles appear even randomly at time, without any rationality. I was very intrigued by the idea of bubbles, how a good can become the leading product in the market
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Proof of Business Concept Purpose and structure of outline feasibility Learning Outcome At the end of this learning resource, students will recognise the purpose of the outline feasibility in proving the business concept and begin to consider the likely structure and content of their own study. The outline feasibility study Purpose of the Study When starting a new venture you will almost certainly need to prepare a Business Plan. However there is little point in investing
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Objective: To discuss the role of capital market intermediaries in the dot-com of 2000 and to check whether their incentives were properly aligned with their intended roles. Observation: This case mainly describes the dot-com bubble and discusses the underlying causes of the bubble burst. It was primarily caused due to the speculation by intermediaries such as investors, accountants, lawyers, regulatory bodies, investment banks, venture capitalists, and money management firms of the value of the
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Amazon.com Have you ever purchased any product on the Internet, used the Internet to collect information or data, or played computer games on the Internet? You must agree that it is fast, easy, and enjoyable. The Internet has been a part of our daily life for several years now. In addition, in the business world, a new business model, E-business and E-commerce, has appeared for several years According to Ali, there are two main types of E-commerce: B2B and B2C (2000). One is business to business
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Journal of Financial Economics 53 (1999) 409 }437 Valuing IPOs Moonchul Kim , Jay R. Ritter * Department of Accounting, KyungHee University, C1 Hoegie-Dong, Dongdaemun-Ku, Seoul 130-701, South Korea Department of Finance, School of Business Administration, University of Florida, Gainesville, FL 32611-7168, USA Received 3 June 1997; received in revised form 18 August 1998 Abstract The use of accounting information in conjunction with comparable "rm multiples is widely recommended for valuing
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Journal of Financial Economics 53 (1999) 409 }437 Valuing IPOs Moonchul Kim , Jay R. Ritter * Department of Accounting, KyungHee University, C1 Hoegie-Dong, Dongdaemun-Ku, Seoul 130-701, South Korea Department of Finance, School of Business Administration, University of Florida, Gainesville, FL 32611-7168, USA Received 3 June 1997; received in revised form 18 August 1998 Abstract The use of accounting information in conjunction with comparable "rm multiples is widely recommended for valuing
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Assignment 3 Common Stock Screen Market Capitalization – Small ($300 million to $2 billion) Generally speaking, companies with smaller market caps are relatively new. This is a good thing, since they have a lot of room for expansion and growth. Although there is a risk that they will fail, if other fundamental factors are good, then there is a good chance the company will flourish. Companies with bigger market caps have already grown and will probably not have as much potential as smaller ones
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1- The term dot.com The term Dot COM (English .com) appeared before the explosion of bubble Internet to indicate, the madness which seized the “entreprenautes” to the evocation of three sesames of the E-trade: market, customers and Internet. A synonym of E-business. 2- The Internet Bubble The "dot-com bubble" sometimes referred to as the "I.T. bubble" was a speculative bubble covering roughly 1995–2001 with its peak on March 10, 2000 with the NASDAQ peaking at 5132.52 during which stock
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The Role of Capital Market Intermediaries in The Dot- Com Crash of 2000 1. What is the intended role of each of the institutions and intermediaries discussed in thecase for the effective functioning of capital markets? The institutions and intermediates roles are: a)Venture capitalists: VC provides capital for companies in their early stages of developmentand screen good business ideas and entrepreneurial teams from bad ones. It employs savvy business people who worked closely with their
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business network.” Although Nicholas Carr’s article has an inflammatory title, “IT Doesn’t Matter,” the main points suggest otherwise. IT does matter but it matters differently. This article was published in 2003, a few years following the dot-com bubble burst. During the Internet’s halcyon days from 1994 to 2000, the businesses created were the result of IT innovations, and this changed the way business interacted with the environment. This led to IT becoming more visible and pervasive
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