The Internet Bubble Research Paper Example | Topics and Well Written Essays - 750 words

The Internet Bubble - Research Paper Example During this period, investors believed that a new era had begun with the internet sector seeing a 1000% growth in only two years, which equaled nearly 6% of the US’ market capitalization and more than 20% of equity volume traded publicly in the US. The bubble hit its peak in early 2000 with a score of 5,048.62 on NASDAQ (Kraay & Ventura, 2011). During this period, the sector saw increased establishment of internet companies that were referred to as Dotcom companies, taken from the suffix at the end of their URL. This bubble burst between the years 2000 and 2002 as NASDAQ saw a loss in value of over 80% with companies, for instance Pets.com, failing completely with more than $7 trillion destroyed in market value (Kraay & Ventura, 2011). This paper seeks to detail what happened during this period, why it transpired, the way it could have been prevented, as well as the main players in the internet bubble.The internet was responsible for creating a euphoric attitude in the 90s, in spiring hopes for the internet as online commerce’s future. This led to the formation of many dotcom companies hoping that they would be worth millions. However, most of these companies were not very successful as those that were overvalued (Perkins & Perkins, 2009). This resulted in these companies crashing, leaving significant losses to be handled by the investors. The collapse, in fact, precipitated the stock market crash of 2001 more than 9/11 did, costing investors $5 trillion. The mid to late 90s saw unrealistic expectations from the public regarding what the internet had to offer. Internet entrepreneurs invested in the hope of becoming internet billionaires, inspiring companies like Kozmo, eBay, and Amazon. However, for every internet company that became a success, hundreds of others collapsed. Most investors ignored fundamental rules of the stock market such as the analysis of P/E ratio, reviewing business plans, and the study of market plans (Perkins & Perkins, 2009) . They, instead, became pre-occupied with ideas that had no proven potential in the market. Factors that Led to the Internet Bubble Burst Two basic factors contributed to this phenomenon. The first was the utilization of metrics that were ignorant of cash flow. Most analysts laid emphasis on aspects of individual entrepreneurship that were not concerned with how to generate cash flow or revenue. One theory contends that the bubble burst due to the investors’ pre-occupation with what was referred to as the network theory, which stated that a network’s value increased exponentially. In addition, the number of nodes increased (Adams, 2009). While this made sense, it neglected the company’s ability utilizing the network for cash generation and making the investors a profit. Secondly, most of the internet company stocks were overvalued. On top of focusing metrics that were unnecessary, analysts made use of high multipliers in formulas and models in the valuation of t he companies, resulting in overly optimistic and unrealistic values (Adams, 2009). While the conservative analysts were not in agreement, the recommendations they made were

Ethical dilemma about the same sex marriage Research Paper - 1

Ethical dilemma about the same sex marriage - Research Paper Example Two people belonging to the same sex getting marriage do not cause any sort of harm to the society. Society that does not give the permission to the gay people to get married is not saving the people from any harm but is causing the renunciation of basic human rights which hence is unethical. Both these concepts are considered to be the conditions of ethics. However, a society denying the rights of gay people to get married is unethical. It is a fact that gay marriages do affect the purity of the cultural concepts, the religious scholars, the sanctity regarding the natural human intimacy, etc. Some of the Christian, Muslim and Jewish extremists think that it is against their faith for the people belonging to same sex to have lustful and loving feelings for one another. The Christian extremist going back to the bible may quote that Our Creator finds it unacceptable to go against the law of nature. The book of Genesis states that God has created a man for a woman and a woman for a man and it cannot be other way around. Most of the faiths also agree to the fact that the primary purpose of marriage is reproduction, which however cannot take place naturally in the same sex marriages (Benson, 2013). There are some of the religious scholars that do support the gay marriages by stating that God condemns such marriages only when it is based on lust not love. Some of the supporters of gay marriages also say that the story of creation present in the religious books is more symbolic than real. In the modern world there are a large group of people which think that marriage is more about love and understanding than starting a new family, so therefore they do not considered gay marriage an unethical issue (Cline, 2013). There are people who do not belong to any faith yet they consider gay marriages being unethical because they feel that it is wrong for the people belonging to the same sex to be in any kind of relationship. This is because