Enron
Imagine having all your money for your retirement plan gone,
your money for vacations and grandchildren all gone. You thought it'd never
happen, but it did, and how your top executives are making off with millions
as your company goes bankrupt. Did executives and accountants destroy
Enron?
Enron with 21,000 employees and international offices around
the globe was the seventh largest company in America. It grew to power by
selling gas and electricity to homes and businesses in the U.S. . After buying a
water company in England it began its international section. It seemed as if
Enron was going to be huge but they had other interests than just energy. In
2000 Enron opened up a new sector of the company called EBS (Enron
Broadband Services). Within the time of one year Enron spent 100 million
dollars buying thousands of miles of cable across the country and buying
rights to thousands more.
Many people thought that they (Enron) had found
yet another gold mine. But behind all the raves and critics, trading never
really took off. Also many senior advisors for Enron said that Enron
Broadband Services was just a huge out of control spending scheme. Though
Enron seemed to be tricking many in the broadband services they didn't
really fool around with tricking people in water or electricity they in a way
knew that people needed those items to survive.
The Scheme
Early in the nities many employees and investors saw
they're small investments rise from 5,000 dollars to 2.5 million. A huge
increase and it seemed, the future was bright for all of Enron investors.
Many stockholders invested more money thinking that they too would soon
see results that fitted their needs. But they soon realized that not only would
they lose...
Hmmm!
A lot has changed since this article was written making it out of date (unless its been used for historical purposes). However, it was well written and the author showed a thorough grasp of the subject matter.
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