enron stocks
enron stocks questions and answers
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Q: Was the stock market over inflated at the time several companies stocks were as well?
Enron, Cisco, etc. One could make a connection that the over-inflated stock market, scandelous companies were part of the "great" economy under Clinton. Possibly also overstated also??
A: Hahahaha! I never thought of it that way, but good point!!! And come to think of it, with the inflated share price, more taxes were given, with the inflated earnings reported, more taxes were given, so I guess you are right that with all this over-inflatedness, with out a doubt the economy would be over inflated! And a Muncie points out, as markets over-inflate, there comes a crash....which is what we have been feeling for some time now! Hahaha, thanks for the laugh....I'll remember this the next time someone says how great the economy was under Clinton!
Q: The problems of corporations such as Enron and WorldCom occurred because:?
The problems of corporations such as Enron and WorldCom occurred because:
a. they failed to offer stock to executives to encourage profit-seeking decisions.
b. providing stock as part of executive compensation encouraged fraudulent practices designed to exaggerate profits and artificially inflate the value of the stock.
c. incompetent auditing failed to identify unprofitable practices.
d. the industries in which those companies operated were no longer profitable.
A: The answer is B, the executives created false income reports to boost the value of their stock and thus making them richer. A is just an example of a solution to the principal-agent problem, C is a possible answer but not as good of an answer as B, and D is incorrect because the industry was not contracting at the time.
Q: I honestly never thought of this before; where has all the money gone that was lost from Enron?
"Someone, somewhere profitted...aren't they accountable?.."Prestwood was a blue-collar Enron employee, working to keep gas flowing through its pipelines. “I had all of my stocks in Enron, but we were advised not to diversify,” he said at the news conference. When he asked Enron officials and their financial advisors about the stock, he said the answer was always, “Nowhere else can you make money like you can at Enron. We believed that. ... We just thought that we could put our confidence in them, that what they put in that newspaper or what they put on that computer would be the truth and you could stand by it. But it wasn’t.”
"The Enron scandal is rearing its ugly head again, and the Securities and Exchange Commission has to decide with whom it will stand: Will it be with small investors who depend on the honest advice of financial advisors or with bankers who, thanks to a recent federal court decision, have a license to facilitate fraud?"
Isaiah J. Poole and Rick Perlstein
A: multimillion's were made when the execs cashed out before the value of the stock tanked.
My question regarding Enron is....
Who is lying in Ken Lays grave? hahah he died so conveniently leaving it all to his family hmmmmm curious, case closed. I bet he faked his own death with those millions, and is alive and well in a gated high rise somewhere in SE Asia.
Q: Curious as to the number of U.S. Congressmen and Representatives who sold stock just before colapse?
I seem to remember , some years back now, that there were several of our congressmen and members of the house that had stock in ENRON sold just before the announced colapse of ENRON. Also, I remember that Enron had asked for federal bailout during the Clinton administration. I would sincerely like to know connection of Enron, Halliburton, Pres. Bush, Vice-President Channey, Former Attorney General Gonzales, and the possible connection to alternative fuel companies that may be of interest to some of these same individuals, and companies. Information sources are from major networks that covered the Enron scandal , i.e. MSNBC, CBS, and CNN. Please, My request for information is for knowledge at this point in time, and to not judge. However, if I learn too much, I may have an opinion. My thanks to all who supply accredited information.
A: "You don't want to know the truth, you can't HANDLE the truth!" (in my best nicholson voice)
Q: Did you know that on Mar 23 2000 the stock of Enron surged 6.8%?
On that day more people poured their money into the leading corporation of "energy economy" lead by charismatic CEO Kenneth Lay. Mr. Lay continued to inspire the employees to "Always ask why", although never ever bothered to ask any questions whatsoddever.
Never mind that the profits of Enron were phony, with $1 trillion being lost and recorded off balance sheet. No wait, I got it wrong, $1 trillion is what Mr. Geithner offloaded off Treasury balance and an onto the Bernanke's Fed in additionon to $50 trillion in other unfunded liabilities, or so. Enron's sins we only on the magnitude of about $30 billion.
A: Yadda, yadda,yadda. I'll wait and see what happens with the economic plans. This isn't Enron.
Q: What are some stocks in history like AHMI that went from 33 dollars this year to out of buisness....?
I am looking for some of the all time biggest stock failures like Enron and other companys.
A: Here are the 15 largest (in dollar terms) since 1980:
http://www.bankruptcydata.com/Research/15_Largest.htm
All household names, and most of them (I'm almost ashamed to admit) took a little of my own money with them when they went!
Q: How do I pay the taxes.?
I purchased Enron stock through my 401k, IRA account. Lost all value in the stock years ago. I now receive a check for about $8000 as part of a class action law suit against Enron.
I have not cashed the check but made copies. I normally have my taxes done at the local IRS office and was going to use the copies of the check to serve the same as a 1099 form noting withdrawal from an IRA account,
This is my only income other than Social Security.
A: That settlement from Enron is fully taxable as ordinary income. Cash that check immediately! If it goes stale you may have serious problems getting it re-issued!
If 1/2 of your Social Security plus all other income is $25,000 or more then up to 85% of your SS benefits may be taxable.
Q: Question about the enron scandal?
I know that Enron lied about its company value like 111 billion dollars. Which convinced people to buy stocks. But how were they caught?
And what caused the stock prices to go down from $90 to pennies? Was it after they were caught? or Before? If they stock prices went down before they were revealed, what caused it to go down?
A: I suggest you to buy "The smartest guys in the room" on DVD.
Q: What is the best advice you have given to someone that was actually taken to heart and used?
I told my best friend to put everything he owned into Enron stock, and you know, he has never thanked me.
A: As a nurse on a psychiatric unit, I give advice every day. Sometimes, the patients come back to me and tell me it worked or didnt work. One particular time, there was an older lady who had no family and she couldnt take care of herself any longer. She was very apprehensive about moving and being with strangers. I recommended a residential care center I knew about and suggested it to her social worker.
Months later, I got a call from the lady thanking me for going out of my way to help her. She liked the new place and had made new friends. This kind of thing happened just often enough to keep me in the business for 33 years.
Q: Bear sterns true value or another scandal like enron?
If the stock was trading 80 just few days ago, and suddenly JP Morgan pay 2 for each bear sterns, do not you figure that was someting hidden in the insiders or bear stern accountants, that nobody knew that the stock true value was so low, i can say that was a big scam for the investors, when they thought bear ster report gonna be sudeenly just one more bad quarter report.
A: there is an insider trading investigation going on right now in JP Morgan and BSC. the rumors surfaced a day before they reported earnings that they were insolvent, so obviously someone knew and leaked the info. as to whether it was a big scam or not, it probably was but no one will get convicted; my rule with bankers is:
bankers lie, cheat, and bend the rules.
Since JPM is a Fed bank (it does the federal reserve's bidding) they should be able to complete the aquisition.
by the way please type a little slower next time, it is hard to read like this.
Q: What is the typical CEO in America do to make himself money?
Will he act ethically when their is a financial penalty? Will he act in the best interest of stockholders or himself? Does he lie when talking to the public? Does he have affairs with other women? Is he someone to look up to or despise and consider corrupted. Is he only good as how much money he can raise your stock? The people in Enron, the executive, do you believe people who can attain much profits become less kind human beings and more greedy? Do they deserve to be trusted, would you trust them?
A: The typical CEO is probably trying to maximize the net worth of the company because he probably owns quite a few stock options if the company is public.
Most of them act relatively legally but might push "ethical" boundaries slightly. There's always a gray area regarding the law.
Probably himself, but if he has options, he might want to maximize short-term shareholder interests.
What do affairs have to do with anything? They probably have affairs at the same rate as the normal American.
As with all people in society, there's a spectrum, with some being corrupt and some being ethical. Making broad stereotypes about any group of the population is generally inaccurate.
Most CEOs are there to make the company run profitably. They might or might not have other concerns in mind. Hired outside CEOs tend to be the ones that care more about the price of the stock.
No, you're making broad stereotypes again. There are people who are greedy in all walks of life, just as some CEOs are greedy and some aren't as much so.
Trust them for what? I'd probably give them the same amount of trust as I would give any stranger if I didn't know them personally, which is not a lot. It takes time to trust anybody in the world. You could look over at politicians and make all of the same arguments that you're making now and change that to, "Are all politicians just about the votes?"
Q: Why are people so quick to blame a presidential administration for economic downturns?
Aren't some recessions really just economic cycles? For example, people blamed the Bush (republican) administration for the enron era, the stock market crash/recession, and high fuel prices of the early part of this decade. Yet one can easily look back to the Carter (democrat) administration at a time with some of the worst inflation in the history of the US (double digit) and high fuel prices. Is either party necessarily better for the economy?
A: It's very difficult for a newly elected president to cause so many changes, most of which President Bush faced when he was first elected. People never think to look at the last presidency for reasons why things happened in the first year or two of Bush. The previous president should have just as much to do with economic and social events that arise during the infancy of a new president.
I understand your reasoning that some recessions are just economic cycles, but you have to remember that many corporations depend on poiltical policies in order to determine taxes and other liabilities that may arise. And depending on the party in control, it differs. So political parties do tend to influence the market, based on the policies they have made in the past and policies they are forecasted to make today.