Enron Corp‪.‬

In late 2001 and in 2002, investors, securities regulators, the energy industry and the capital markets watched as the details of behind the collapse of Enron Corporation unfolded. Enron was the largest corporation to collapse in U.S. history, with the company's share price losing most of its value in the 10 months preceding its bankruptcy petition. A large shareholder, like virtually all of Enron's shareholders, was unhappy with his losses and he wanted to know how, despite all the checks and balances in the financial reporting system, this collapse happened suddenly and with so little warning. This shareholder wondered whether the system be relied upon to protect him and what he should do in the future if he continued to invest in capital markets.