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A business, especially a publicly-traded company, that conducts most or all of its business over the Internet. Dot-coms may conduct business in one or more of the following areas: Content, Commerce, and Connection. Content companies provide information, either for free or for a charge, and earn most of their operating income from advertising. Commerce companies sell new and/or used goods directly over the Internet. Connection companies provide Internet services directly to customers.

Dot-coms were hugely popular investments in the 1990s, with IPOs of hundreds of dollars per share, even if a company had never produced a profit and, in some cases, had never earned any revenue. This came from the theory that Internet companies needed to expand their customer bases as much as possible and thus corner the largest possible market share, even if this meant massive losses. While this worked for some dot-coms, notably Google, which did not produce a profit for its first several years of operation, the theory was unsustainable because, in a given industry, only one or two companies could corner large market shares, meaning most dot-coms were doomed to failure. This dot-com bubble burst in 2000.
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1. Of or relating to a company or the stock of a company engaged primarily in a business associated with the Internet. is the most obvious example of a dot-com company.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Soon, the dotcom bust swept the world, but he kept the faith and his company was among the few that survived.
Internet users are now skirting round ICANN to create their own unique and memorable range of new Dashcom (not Dotcom) Domains and TLDs, absolutely free.
[H.sub.3]: DotComs change their prices more frequently than do MCRs.
Investment capital in general has become much harder to come by since the heady days when nothing with a dotcom after its name could seem to go wrong.
All this has led to analysts predicting the end of dotcom mania.
Petesch sees dotcoms as ticking time bombs of employment-related lawsuits.
The company is exhibiting one dotcom tendency though, its maiden results for the year to July 31 showed a loss of pounds 2 million on turnover of pounds 327,000.
San Francisco, CA, December 21, 2010 --( As ICANN met up in the city of Cartagena, the new Dashcom (not Dotcom) Registry opened its doors.
More than three-quarters of companies admit that they find new staff through personal relationships rather than business experience, a nd this nepotism is threatening the diversity that such firms need if they are to flourish, according to After the Goldrush--the Dotcom Dilemma, a report by PricewaterhouseCoopers.
James Fanshawe, e-business risk management partner at PwC in Birmingham, said: "The survey highlights that the failure of the dotcoms to put the customer as number one is clearly a massive issue.
Mr Philip Atkinson, IP partner at Eversheds' Birmingham office, said: 'Wise investors will continue to be attracted by the enormous potential offered by dotcoms but should put intellectual property at the centre of new strategies for identifying the good ones which will continue to thrive.
The dotcoms added a great deal of excitement at Licensing 2000-the irony being that what was once almost exclusively an entertainment-based trade show was upstaged in style and swagger by a host of Internet wannabes.