Telecommunication Market dropped:
After WorldCom scandal the telecommunication
Market dropped 7% decreased in 2002.
HGK Debt securities:
HGK stands for Harris, Greenhouse, Kutzel &
HGK Asset Management company in New Jersey.
They purchased $130 million of the debt securities &
lost it all in this case.
Effect on Competitors:
AT&T and Sprint are also telecommunication
Companies and competitors of WorldCom &
AT&T & Sprint take wrong
Decisions to see accounting figure
like firing of 20,000 employees
and to maintain their position equal
to WorldCom in the market they cut
off their cost.
Effect on Pension Fund Company:
The New York State Common Retirement Fund
is Largest public pension fund in the U.S & they collect
local employees‟ retirement funds and
invested $300 million in WorldCom and after this secadal the
lost their Money.
Effect on NASDAQ :
After this fraud WorldCom was delisted from
NESDAQ stock market.
Stock Index of WorldCom in NASDAQ:
Effect on UUNet Company:
UUNet is an Internet Provider company
and it handles more than 40% of U.S
internet traffic. In 1998 UUNet merged
with WorldCom After this scandal less
Attention has been given
to WorldCom’s internet service, UUNet.
Effect on share price of other companies:
The share price of Nokia,
Sony Ericsson, Vodafone
and other telecommunication
Growth Rate of Stock Market:
Stock price was at a peak of $64.5 in 1999,after this scandal the
stock price fell to $0.83 by July 21,2002.
Effects on Holders and Lender:
After this big scandal of WorldCom shareholders of WorldCom
who invest in different stock markets found that their shares
become worthless and vender suffer loss.