Before its demise, Enron was a large energy, commodities, and services company based in Houston, Texas. Its collapse affected over 20,000 employees and shook Wall Street. At Enron’s peak, its shares were worth $90.75. When it declared bankruptcy on Dec. 2, 2001, shares traded at $0.26.
Key Takeaways
- Enron’s accounting method was revised from a traditional historical cost accounting method to a mark-to-market (MTM) accounting method in 1992.
- Enron used special-purpose vehicles to hide its debt and toxic assets from investors and creditors.
- The price of Enron’s shares went from $90.75 at its peak to $0.26 at bankruptcy.
- The company paid its creditors over $21.8 billion from 2004 to 2012.
Enron’s History and Accounting Method
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