Dotcom

Definition of 'Dotcom'


A company that embraces the internet as the key component in its business. Dotcoms are so named because of the URL customers visit to do business with the company, e.g. www.Amazon.com. The "com" stands for "commercial." By contrast, websites run by companies whose primary motivations are not commercial, such as nonprofit companies, often have domain names ending in ".org," which is short for "organization."

Investopedia explains 'Dotcom'


The dotcoms took the world by storm in the late 1990s, rising faster than any industry in recent memory. Despite the fact that most internet companies were losing money at alarming rates, they were given huge valuations on the stock market - but it didn't last for long. The Nasdaq surged to a historical high in March of 2000, and within a few years most of the dotcom sector was wiped out.


Filed Under: ,

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center