The Collapse of Enron Free Essay

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The Collapse of Enron

Enron is one of the America’s largest corporations of all times with stock prices at one point reaching close to $90 per share. It started as a small natural gas company in 1985 from the merger of two pipeline companies, Houston Natural Gas and InterNorth, and grew into the energy trading powerhouse it is known as today. Enron incurred a large amount of debt from this merger and in order to survive decided to buy gas from a network of suppliers and sell it to a network of consumers. The idea of trading resources was actually an ingenious concept and has been adopted by several other successful businesses since then. Enron bought and sold contracts on gas, then electricity, and was working its way into other commodities such as broadban

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