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QUESTION

Enron Corp. was one of several corporations convicted of fraud in its accounting practices during the early part of this decade.

Enron Corp. was one of several corporations convicted of fraud in its accounting practices during the early part of this decade. It had created dummy corporations to hide massive borrowing and to give it the appearance of extraordinary profitability. Use the model of demand and supply to explain the likely impact of such convictions on the stocks of other corporations.

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