What Happened At Enron?

Enron started in 1985 as a regular oil company. They had rapid growth and attracted investors and the stock prices continued to climb. They diversified into other industries and to continue looking impressive to the investor, they borrowed money but kept debt hidden in other partnerships. They appeared to be doing great and employees and investors continued to invest. However, the SEC stepped in. Enron had overstated their earnings by $586 million over a 4 year period and owed $6 billion. Enron could not afford to pay their creditors and declared bankruptcy. It left the investors and employees out in the cold.