Technology Sector Privite Equity and a New Speculative Bubble Term Paper - 1

Technology Sector Privite Equity and a New hazardous Bubble - Term Paper ExampleAccording to US securities law, a insular company is non permitted to cast off more than 500 individual investors without making its financial information public. Being a private company, Facebook is not required by the SEC to share financial information with investors at this time.In this paper, we provide take a look at the history and features of speculative bubbles including the technology bubble of the late mid-nineties (dot com bust) in an attempt to use economic data to analyze todays environment to come up the presence of a bubble and its potential impacts.Speculative bubbles have long fascinated and puzzled economists crossways many time periods. From the original Tulip Mania of the 1630s to the Dot- Com bubble of the late nineties, these phenomena have kept economists on their toes for centuries, in trying to pin down substantive causative agents that are responsible for the swift outgro wth in the market values of get off the groundicular assets. Till today, experts have been unable to chalk down aim reasons for the emergence of such bubbles as they can rise up even in the most predictable markets where the market participants can very accurately calculate the intrinsic value of the assets and where speculation plays no part in the actual valuation process. What is the origin of bubbles? Simply put, speculative bubbles are caused by precipitating factors that have the ability to bring around a change in the publics perception about the value of an asset and about the future prospects of that asset, which can have an immediate impact on exact (Shiller , 2000)One of the most famous economists of all time, John Maynard Keynes pointed out in his book The General system of Employment, Interest and Money, that abrupt and immediate stock price changes have their roots in the joint crowd behavior of the various market agents more than anything else and that in almost all such scenarios, these rises in prices have