Case Study Chapter 1: 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 the case for the effective functioning of capital markets? i. Venture Capitalist: provides capital for the company in the early stage of development and ensures company to have a good management team and sustainable business. VC demand high return on investment and sells stock usually to public through IPO
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The Science Behind Bubbles Bubbles are fascinating. They are used by children around the world as a source of entertainment. But‚ there’s more to them than meets the eye. The science around bubbles deals with chemical bonds‚ surface tension‚ air density‚ and more. The anatomy of a bubble seems simple‚ but it is actually very complicated. Bubbles are usually looked at as something very simple‚ but scientists think otherwise. Standard bubbles that you can make at home consist of soapy detergent
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Housing market is defined as the General market of houses being purchased and sold between buyers and sellers either directly by owners or indirectly through brokers. Housing problem is basically the problem of mismatch between the supply and demand for housing and that it can be resolved or at least reduced when a more balanced situation can be achieved. The consumers and producers both face problems and challenges in the housing market. One of the major problems faced by the consumers is the
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timely and costly) to the companies as they might lose the client and will be pressured (by companies threatening to go to other competing auditors) to issue an unqualified opinion. 3. Who‚ if anyone‚ was primarily responsible for the internet stock bubble There is no entities to put the full blame on as everyone was to blame as everyone was caught up in the bandwagon of the rapid expansion of the world wide web that they were to lax in their deals. However‚ more emphasis would be put on buy and sell-side
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Meeker of Morgan Stanley have indicated the Internet Sector to hold promising investment opportunities‚ therefore Creative Computers and its subsidiary Ubid present potential prospects for investment. Analysis: Internet Sector: Dot-com Bubble The dot-com bubble has enabled the Internet sector and its related fields to yield earnings at an above-average rate relative to the market. Hence the expected return on these growth stocks is great (see figure below). However these investments involve an
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included the customers of AOL ’s dial-up service and subscribers of Time Warner ’s cable and magazine divisions. A major setback to the success of the merger was the bursting of the Internet bubble‚ which was expected to rule the media and entertainment industry in the 21st century. When the Internet bubble burst‚ there was a steep decline in subscriber growth for AOL‚ which led to a steep decline in its advertising revenues. Time Warner merged with America Online in 2001 at the height of the
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The Internet Paper Mrs. Elizabeth Labby The Internet Paper Even though the way individuals think will become something of the past‚ search engines will be human brains for the future. Consumed by many different types of computers and different places where information is gathered on the internet; the way of thinking for any individual will not exist in the future if society continues to head in the same direction. From the 1960’s many scientific and military personnel wanted to create a way
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Michael Jackson and Bubbles 1988 by Jeff Koons is without a doubt a controversial work of art that delves into popular culture in such a way that hegemonic readings of the sculpture are not possible. The image invokes oppositional readings by different viewers with such polarization that this masterpiece‚ if it can be called that‚ is referred to as both sublime and banal‚ as a valued work of art and as a kitschy commodity. This diversity in the assessed meaning of this work draws upon deeply rooted
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I.INTRODUCTION: Irrational exuberance means wishful thinking on the part of investors that blinds us to the truth of our situation (definition based on the book of Yale professor Robert Shiller) or can be simply understood as the overvalue/undervalue of the market because of irrational thoughts. The word irrational and exuberance themselves are not new‚ but they are first combined and used by Mr. Alan Greenspan- former Federal Reserve Board Chairman in his comments on December 5th‚ 1996. What
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in order to fuel the rapid growth of the business‚ TRX should be considered as a good candidate for going public. Nevertheless‚ TRX first failed to go public in 2000 attributed to the overall stock market conditions were awful since the dot-com bubble burst in the late 1990s. From travel industry condition performance‚ TRX encounter the recession of travel industry‚ which affected its fortunes since the company closely related with the overall health of the industry. From the overall stock market
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