The purpose of the new law is to protect investors by improving the accuracy and reliability of corporate disclosures. ... It is imperative that the government take steps to restore consumer confidence in the stock markets, since these investors are the ones responsible for the corporations being able to raise capital in the equity and bond markets. ... In a stock market where consume confidence plays a major role in the direction of the markets, I think that Government intervention was a little bit too late to prevent the losses suffered by investors. ... Strategic Investor Relations. 2. 4....

• Word Count: 720
• Approx Pages: 3
• Grade Level: Undergraduate

The trading of Worldcom stock stopped trading in late June at an all time low. The news from the Worldcom scandal was so far reaching it set new post September 11th lows for the stock market. ... The stakeholders stretch far and wide and include the Worldcom investors, creditors, employees and their families, customers, the auditors, the stock market, other corporations especially in the telecommunications industry, and even the Worldcom executives responsible. Investors in Worldcom were large and small, some were employees with 401k(s) invested in Worldcom stock, but all were affected in some...

• Word Count: 871
• Approx Pages: 3
• Grade Level: Undergraduate

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

As we have learned in the University clases over and over again, ethics is very important to company's success because ethical approach to business sparks investor confidence and consumer loyalty. ... Shareholders rapidly sold their stock and credit agencies slashed the company's credit ratings. ... By the end of November 2001, credit agencies had downgraded Enron's debt to "junk" status and shareholder selling had driven stock prices to their lowest. The article argues that financial analysts, economists, and regulators agree that Enron's fall as the result of investo...

• Word Count: 458
• Approx Pages: 2
• Has Bibliography
• 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

As the article indicates, "markets exist through the grace of investors." If investors are making their investment decisions based on the false and fraudulent information provided by corporations, the ideal of free, fair and global market would be lost forever. ... Management, whose compensation is tied to the stock price, tends to give way to the temptation to allegedly make up the numbers or get involved with insider trading. ... First, executive's compensation must be less tied to the stock option. Management who always concerned about the stock price can lose long-term vision of the c...

• Word Count: 514
• Approx Pages: 2
• Has Bibliography
• Grade Level: Undergraduate

Lack of clearness and openness with investors contributed to a massive loss of investor confidence and insecurity on the part of other energy traders to deal with Enron. ... This caused the Securities and Exchange Commission to open an investigation into Enron's partnerships and the company's main rival, Dynegy, which announced it wanted to merge with Enron, but later decided not to after Enron's stock plummeted to less than a dollar a share. ... Enron's crumple left investors ruined and thousands of employees out of work with their retirement savings vanished. Enron, wh...

• Word Count: 510
• Approx Pages: 2
• Grade Level: Undergraduate

They were also designed to help the company grow quickly without adding too much debt to its books or diluting the value of the company's stock. ... Enron said it was careful to assure there were no conflicts of interest, but under pressure from investors Fastow resigned from those partnerships last summer. But before his resignation he had earned as much as $30 million through his role with the partnerships, while a number of other Enron employees also invested in them personally." ... Once money, which meant Enron Stock Price, became the most important thing; ethics, morals and the fin...

• Word Count: 1277
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

They were also designed to help the company grow quickly without adding too much debt to its books or diluting the value of the company's stock. ... Enron said it was careful to assure there were no conflicts of interest, but under pressure from investors Fastow resigned from those partnerships last summer. But before his resignation he had earned as much as $30 million through his role with the partnerships, while a number of other Enron employees also invested in them personally." ... Once money, which meant Enron Stock Price, became the most important thing; ethics, morals and the fin...

• Word Count: 1262
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

People were affected by loss of jobs, loss of pension savings, and individual investors who owned stock in the company lost significant losses as well. ... "Were Enron's partnerships with shell corporations designed to hide its liabilities and mislead investor's?" ... "Did Enron executives know the company was sinking as they sold $1.1 billion in stock while encouraging employees and other investors to keep buying stock?" ... Unfortunately, "key Enron executives were selling stock shortly before the company announced a restatement of earnings."... If an executive transferred stock to...

• Word Count: 1972
• Approx Pages: 8
• Grade Level: Undergraduate

Also Andy Fostow shouldn't have accepted to create companies to boost Enron and as a senior most executive the first right of way for him should have been to maximize values to shareholders instead of self creating entities and convince the investors to invest towards them which eventually will hit Enron in the longer run. ... The powerful media, congress and the other companies questioned Enron for its own way and eventually there was a stock decline from the similar companies. ... This law was also designed to give the accurate number to the investors and the disclosures of the corpora...

• Word Count: 1320
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

This act, also known as the "Public Company Accounting Reform and Investor Protection Act," was enacted because of some of the major corporate and accounting scandals. The government wanted to find a way to reduce these types of scandals from happening because it cost the investors billions of dollars. ... After the act was passed the number of American companies deregistering for public stock exchange almost tripled from pervious years. ...

• Word Count: 643
• Approx Pages: 3
• Grade Level: Undergraduate

These lawsuits include lost of pensions and stock for employees seeking repayment. ... The purpose of registration is to disclose finical and other information about the issuer and those who control it, so that potential investors may appraise the merits of the securities. The Act also requires that potential investors be furnished with a prospectus, a document offering the securities for sale, containing the important data set forth in the registration statement. ...

• Word Count: 920
• Approx Pages: 4
• Grade Level: Undergraduate

The abrupt resignation of CEO Jeffrey Skilling, citing "entirely personal reasons" for his decision was to sow the seed of doubt in the shareholders" minds, and the stock price began to slide. ... It was also forced to knock $1.2bn off shareholder equity at the time, a move that led to a crisis in investor confidence and a collapse in Enron's share price precipitated by a credit rating downgrade, which was almost certainly the last straw. ...

• Word Count: 1302
• Approx Pages: 5
• Grade Level: Undergraduate

There has not really been any substantial evidence presenting that the stock market has become further dependable over the past 10 years since the Sarbanes-Oxley Act of 2002. ... Most people with good sense will always choose to invest their money in organizations who are legit and trustworthy, and is on top of their game as far as preventing fraud and brining security, and confidence throughout the organization....

• Word Count: 1379
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate

Blueprints of Ethics Due to the Enron scandal, countless individuals lost life savings because of the unethical decisions made by the executives of the company. In this case, the executives greedily hoarded millions of dollars for their own pensions and retirements funds, while allowing inside in...

• Word Count: 1771
• Approx Pages: 7
• Grade Level: Undergraduate

It was formed in 2002, by a core group of experienced financial and operational consultants who used equity sponsorship from investors. ... The HCG headquarters is situated in Chicago, Illinois and is listed on the NASDAQ Stock Market. ... It was the fear of not reporting a satisfactory result and performance to the market to accommodate the high expectations that was put on them; and the financial greed associated with an increasing stock price and net profits. ...

• Word Count: 2759
• Approx Pages: 11
• Has Bibliography
• Grade Level: Undergraduate