The dot-com crash followed the burst of speculation in internet-related companies between 2000 and 2002.
During the late 1990s, investors poured money into businesses associated with the growing internet. Many companies had little revenue or no profits, yet their share prices rose rapidly because investors expected future growth. The Nasdaq Composite, heavily weighted toward technology stocks, became the clearest measure of this enthusiasm.
The Nasdaq peaked at 5,048.62 on March 10, 2000. As investors reconsidered unrealistic valuations, technology shares collapsed. The index fell about 78 percent from its peak before reaching a low in October 2002. Numerous internet companies failed, while stronger firms survived and later became major businesses.
The dot-com crash is not the same as the 2008 housing-led crash. Both involved major losses, but the earlier episode centered on technology-stock valuations and venture-capital speculation.