Enron Essay

429 words - 2 pages

Enron was a leader in the natural gases business. Not to long ago they were near the top of their industry, as their stock price was a soaring 90. But that has all now diminished into a little number, with too many zeros coming after the decimal. The company has been banned from the New York Stock Exchange, and is barely surviving to be a stock.Why has an energy giant fallen they way it has? Enron was at top of their game in August of 2000. Their stock price was over $90 per share, and they wear charging along. About a couple months later, Enron starts toi fall into trouble. Their CEO resigns and states that it was personal reasons. They are having trouble woth their partners, as they say Enron is over pricing their products and cheating us. Soon to come was that Enron posts BIG quarter loses on October 15, 2001. They are helped by Chevron who injected 1.5 million dollars to the aid of Enron. That did not help because by December 2, 2001, Enron file Chapter 11 bankrupcy and they fire 4,000 employees the following day. From then on, it had been a freefall for Enron.The NYSE, on January 15, 2002, halt all trading of Enron, which stock price was way below $10, and eventualy delsit then from they NYSE. Soon after, the company decliones in stock price to be worth less than a dime. Is this the biggest scandal in our history? No. Simply because real people with real money who had nothing to do with Enron's problems lost money.After all the hype about the company going sour, people started to investigate.They soon found out that all the board members of the company had sold all their stock, near when the price of Enron was at the top. They had told their employees to keep their stocks, and that the company will come through. That never happened. Lots o loyal employees, lost all their money in stocks, and not to mention their jobs, while the people in charge on Enron knew exactly what was to come. Another showing of bad ethics in the workplace, as Enron was the whole deal, and more.


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