tech bubble


A period of significant increase in the stock market due to a rise in speculation of technology stocks. Such stocks in the bubble may be categorized in one particular industry or encompass an entire sector of technology depending on investor demand. Investors start considering the potential for a huge profit opportunity and then proceed to purchase stocks that they would not typically consider. During this time, new technology companies will look to go public through initial public offers to capitalize on the demands of investor interest.
An example of a tech bubble was the dot com boom in 1999 and subsequent collapse in 2000.

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