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    The NASDAQ Composite index spiked in the late 1990s and then fell sharply as a result of the dot-com bubble. The Nasdaq Composite stock market index, which included many Internet-based companies, peaked in value on March 10, 2000 before crashing. The burst of the bubble lasted from March 11, 2000 to October 9, 2002. In 1993, the release of the Mosaic web browser made access to the World Wide Web easier.

    At the same time, low interest rates increased the availability of capital. As a result of these factors, many investors were eager to invest, at any valuation, in any dot-com company, especially if it had one of the Internet-related prefixes or a “. An unprecedented amount of personal investing occurred during the boom and stories of people quitting their jobs to engage in full-time day trading were common. At the height of the boom, it was possible for a promising dot-com company to become a public company via an IPO and raise a substantial amount of money even if it had never made a profit—or, in some cases, realized any material revenue. Most dot-com companies incurred net operating losses as they spent heavily on advertising and promotions to harness network effects to build market share or mind share as fast as possible, using the mottos “get big fast” and “get large or get lost”. The “growth over profits” mentality and the aura of “new economy” invincibility led some companies to engage in lavish spending on elaborate business facilities and luxury vacations for employees. Upon the launch of a new product or website, a company would organize an expensive event called a dot com party.

    Telecommunications equipment providers, convinced that the future economy would require ubiquitous broadband access, went deeply into debt to improve their networks with high-speed equipment and fiber optic cables. Around the turn of the millennium, spending on technology was volatile as companies prepared for the Year 2000 problem, which, when the clocks changed to the year 2000, actually had minimal impact. On January 10, 2000, America Online announced a merger with Time Warner, the largest to date and a move that was questioned by many analysts. In February 2000, with the Year 2000 problem no longer a worry, Alan Greenspan announced plans to aggressively raise interest rates, which led to significant stock market volatility as analysts disagreed as to whether or not technology companies would be affected by higher borrowing costs. On March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048. On March 13, 2000, news that Japan had once again entered a recession triggered a global sell off that disproportionately affected technology stocks. Bay ended merger talks and the Nasdaq fell 2.