Dot Com Bubble
Definition
A speculative market bubble in the late 1990s centered around the rapid rise and fall in value of Internet-based companies.
Analogy
Imagine if everyone at school suddenly started trading lunchboxes because they believed they would be worth a lot more in the future. This creates a "lunchbox bubble." But then people realize that these lunchboxes aren't really worth that much after all - this is when the bubble bursts. That's what happened during the dot com bubble but with internet companies instead of lunchboxes.
Related terms
Speculation: Investment in stocks, property, etc., in the hope of gain but with the risk of loss.
Stock Market Crash: A sudden dramatic decline of stock prices across a significant cross-section of a stock market.
E-commerce: Commercial transactions conducted electronically on the Internet.
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