1. Fraud
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