Enron investors did not follow the three cardinal rules for investing. (1) Know your investments: Two of the nations most respected financial investors, Warren Buffet and Peter Lynch, have long recommended that people invest only in companies they know and understand. (2) Understand investment risk and how you handle risk: Enron was a risky company. ... They had too much money invested in their employers stock. ... A firm may stretch the rules if they are a high investor. ... Employees can invest in their companies stock but it should be only a small part of their portfolio. ... Organizations ...

• Word Count: 1893
• Approx Pages: 8
• Grade Level: Undergraduate

In order to invest, Enron needed capital, which made a good credit rating critical to the future growth and success of the company. ... Partnership investors were compensated for their risk by being offered additional shares of Enron stock. ... The day after announcing this loss, Enron changed its" 401(k) pension plan administrator, which prevented Enron employees from selling their Enron stock for a period of 30 days and allowed executives to cash in on stock before the value dropped. ... WorldCom is charged with defrauding investors by understating expenses (which inflated the company...

• Word Count: 2557
• Approx Pages: 10
• Grade Level: Undergraduate

Having a common standard of financial reporting that is familiar with many other businesses makes it easier for investors to compare different business entities. This ease in comparison is helpful especially when the investors do not have the luxury of time, for example, when there are fluctuations or intense speculations in the stock markets and they need to make split second decisions. ... The stock exchange market also stands to gain from a harmonization of international accounting standards (Jeno 2011, p.29). Usually, there are certain conditions that different stock markets set in order f...

• Word Count: 1396
• Approx Pages: 6
• Grade Level: Undergraduate

Many investors rely solely on a company's earnings and growth rates. ... An investor or analyst must adjust for those differences and be aware of accounting discrepancies. ... The preferred stock was recorded on the balance sheet at the estimated fair value. However, the stock is in a privately held company, which makes it difficult to estimate the value of the stock. ... Stock prices fluctuate and there have been drastic changes in the stock market since 1999. ...

• Word Count: 4349
• Approx Pages: 17
• Has Bibliography
• Grade Level: Undergraduate

Cannondale Corporation Case Analysis Strategic Profile Cannondale is a product differentiator due to their expertise and innovation in aluminum composite material design and fabrication. Cannondale is based on a vertical integration business strategy, whereas most of its competitors utilize ma...

• Word Count: 3584
• Approx Pages: 14
• Grade Level: Undergraduate