IPOs Surging, At Highest Level Since Dot-com Bubble

Initial public offerings (IPOs) in the second quarter of 2014 surged 42 percent, the highest since 2000, right as the “Dotcom bubble” was bursting sending stocks dramatically lower.

88 IPOS marked in 2Q'14

In the second quarter of 2014 88 IPOs marked the highest total since the third quarter of 2000, when there were 135. During the “Dotcom bubble” crash, from March 11, 2000 to October 9, 2002, the Nasdaq lost 78 percent of its value, falling from 5046.86 to 1114.11 over that period of time. Excessive IPOs are often considered a sign of excessive market speculation by professional investors as they typically occur during market environments of overvaluation.

Gross proceeds from...