January 15, 2002
Web posted at: 5:42 PM EST (2242 GMT)
Overview: Why did the New York Stock Exchange suspend trading of Enron stock? Use the CNNfyi.com article and discussion/activity to have students explain Enron's rise to prominence and the controversy surrounding its downfall. Have students learn how the dramatic decrease in the stock prices affects its own employees and investors.
Curriculum connections: Economics, Current Events
Have students read the CNNfyi.com article "Wall Street dumps Enron,"
and ask the following questions:
1. What is the New York Stock Exchange? Why did the New York Stock Exchange suspend trading of Enron stock? At what price was Enron stock selling one year ago? What is the current price? Why was the company de-listed? Do you agree with the New York Stock Exchange's decision? Why or why not?
2. What is the Enron Corporation? How much revenue did the company claim they made in 2000? How many people are employed by Enron? How was Enron formed? What agencies are filing investigations against Enron?
3. Refer students to the Web sites below to learn more about Enron's rise to prominence and the controversy surrounding its downfall. Have students create a timeline of the key events related to Enron's decline. Have students discover who was hurt by the collapse of the company's stock. After students present their findings, ask: What lessons can companies and employees learn from Enron's decline?
Extensions
1. Students can create a stock portfolio and determine gains and losses using Harcourt College's Stock Market game
2. Students can interview a stock market analyst who has been invited as a guest speaker about the benefits and drawbacks of investing in the stock market.
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