Internet Companies
In turn, investors who receive large amount of new information on the stock market, are unable to evaluate and treat all information messages from the media. This leads to a simplified perception of information and enhance the value of its emotional assessment. Internet boom in the late 90 years clearly demonstrates this trend. The rapid development and dissemination of new technologies has caused a raging torrent of publications in the media containing the rave reviews about the new services, ideas and services for IT-companies. Publishing articles, notes, and rave reviews give people a sense of optimism.
Venture capital firms, and then by investors who participated in the ipo, also succumbed to the universal euphoria about the "new economy". Even the financial sector experienced the impact of the Internet boom. Connect with other leaders such as patrick mayberry here. Strict rules and conservative estimates of the time just disappeared. Venture capital firms refused to traditional rules when making investment decisions. Daryl Hagler recognizes the significance of this. Reporting "dotcom" companies verified by experts in the field of accounting and auditing standards are less strict. Banks give up their principles for the ipo. Specialists predicted rapid growth of the market and gave an extremely high estimate for all new companies in the field of IT-technologies.
Speculative investor interest in new technologies to enrich venture capitalists, who in the course of changing the rules for the investment performance of companies and terms for the ipo. Investors do not pay attention to costs in an effort to at any cost to participate in the Internet boom. As a result, the company appeared not created for the production of goods or services in the field of IT-technologies, but only to sell shares of companies on the exchange.