The rapid rise and fall of Facebook's stock has given us a
new financial term: Zucked. It refers to
the sudden wealth loss that occurs when a dot.com stock plunges and the
founders see their paper fortunes vanish into the digital ether, Yahoo reports. It's like the
dot.com bust of the early 2000s - but with a faster cycle of wealth creation
and destruction.
At least the dot-commers got to enjoy their fantasy fortunes
for a couple years. The social-media and current web crowd had just a few
months (or in some cases weeks) to feel the joys of being a paper billionaire.
Steven Kaplan of Chicago University's Booth School said the
latest hyper-cycle of tech wealth reflects the fact that fortunes are highly
dependent on the daily swings of stock markets and fickle moods of
investors. "The social media
fortunes have been very volatile," he said. "This reflects the fact
that the valuations of social media firms have fluctuated wildly over the last
year with fluctuations in investor expectations about future company cash flows
and success….
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