World com scandal Effects on world

9,504 views
8,833 views

Published on

it is a biggest financial scandal in Accounts of company in America. And these are some effects after thus scandal.

Published in: Economy & Finance, Business
1 Comment
5 Likes
Statistics
Notes
No Downloads
Views
Total views
9,504
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
185
Comments
1
Likes
5
Embeds 0
No embeds

No notes for slide

World com scandal Effects on world

  1. 1. M.Umer M.Com 1 Reg no. 0116
  2. 2.  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.
  3. 3.  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.
  4. 4.  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.
  5. 5.  Effect on NASDAQ : After this fraud WorldCom was delisted from NESDAQ stock market.  Stock Index of WorldCom in NASDAQ:  Before Scandal: Index Year 5000 2000  After Scandal: Index Year 1500 2002
  6. 6.  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.
  7. 7.  Effect on share price of other companies: The share price of Nokia, Sony Ericsson, Vodafone and other telecommunication Companies declined.
  8. 8.  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.

×