Financial Markets after Enron and WorldCom Collapse
... markets after Enron and WorldCom collapse
The 1990s saw a tremendous stock market expansion in what was dubbed a tech bubble. However, by 2000 air began and then continued to leak out of this bubble the biggest of which was December 2001 fall of the seventh largest US Company, Enron. This was followed closely by WorldCom, one of the largest telecom companies in July 2002, (Roy and Walter, 53).
Several changes have taken place since. First off, the ensuing public outrage revealed a questionable investor confidence in corporate management, regulatory bodies such as the Securities Exchange Commission, accounting and reporting practices for corporations, independence of auditors, pension and mutual fund ...