What was the result of the "Dot-com Bubble" of the late 1990s?

Study for the AMSCO AP United States History Exam (APUSH) – Period 9. Enhance your knowledge with flashcards and multiple-choice questions. Each question comes with hints and explanations. Get ready for your exam!

The "Dot-com Bubble," which occurred during the late 1990s, was characterized by a rapid rise in stock prices of internet-based companies, driven by speculation and investor enthusiasm for new technology. As the bubble inflated, many companies, often without viable business models, saw their stock prices soar. However, this all came to a sudden halt in March 2000 when confidence collapsed, leading to a dramatic decline in stock prices. This resulted in a significant stock market crash, where many internet companies failed and billions of dollars of investment were lost.

The collapse not only affected the companies involved but also had broader implications for the stock market and the economy, leading to a recession in the early 2000s. This is why the answer indicating a significant stock market crash as a result of the "Dot-com Bubble" is accurately representative of the period's economic realities.

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