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| Former CEO of Enron Jeffery Skilling |
Wednesday, May 8, 2019
Enron Scandal
At its peak Enron boasted over 100 billion dollars in revenue and its
price per share was $90.75. However on December 1, 2001 Enron declared
bankruptcy and the price per share dropped all the way to $0.26 which
affected thousands of employees and Wall Street. The reason why Enron
collapsed over night was because the leadership lied to regulators about
their earnings. They would hide any financial losses from investors.
For example Enron would build an asset and immediately claim the
projected profits from the asset when in reality the asset didn't make
any money yet. With this tactic Enron appeared to be a no risk
investment for investors.
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2 comments:
Why did he declare bankruptcy???
The lack of transparency coupled with the eagerness of investors led to a devastating loss for both parties
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