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This practice drove up their stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stocks. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. As the scandal was revealed, Enron shares dropped from over $90 to less than $.50. Enron filed for bankruptcy on December 2, 2001.
Stakeholders and Conflicts of Interest
Modern corporations like Enron usually have multiple stakeholders with often conflicting interests and expectations...
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