DEFINITION of 'Enroned '

A slang term for having been negatively affected by senior management's inappropriate actions or decisions. Being "Enroned" can happen to any stakeholder, such as employees, shareholders or even suppliers. The term is derived from the name Enron, which was an American energy company that filed for bankruptcy in late 2001 due to accounting fraud. These ill actions caused thousands to lose their jobs and investment value.

BREAKING DOWN 'Enroned '

In any large corporation there is faith placed in upper management to make the right decisions and lead the company into profitability. When the company makes decisions that cause job loss or the reduction in benefits, the affected individual is said to have been "Enroned". For example, if someone has lost their job because their employer was shut down due to illegal activities that they had nothing to do with, they have been "Enroned."

RELATED TERMS
  1. Enron

    A U.S. energy-trading and utilities company that perpetuated ...
  2. Nigerian Barge Deal

    A 1999 agreement between Enron and Merrill Lynch in which Enron ...
  3. Enronomics

    A fraudulent accounting technique that involves a parent company ...
  4. Price Swap Derivative

    A derivative transaction in which one party guarantees a fixed ...
  5. Stakeholder

    A party that has an interest in an enterprise or project. The ...
  6. Management Risk

    The risks associated with ineffective, destructive or underperforming ...
Related Articles
  1. Insights

    Enron Scandal: The Fall of a Wall Street Darling

    The collapse of Enron in 2001 exposed investors' vulnerability to accounting scandals.
  2. Small Business

    Why Enron Collapsed

    Enron’s collapse is a classic example of greed gone wrong.
  3. Retirement

    Business Owners: Avoid Enron-esque Retirement Plans

    If your business administers a retirement plan, you should recognize what's at stake.
  4. Managing Wealth

    4 Must Watch Films and Documentaries for Accountants

    Learn how these must-watch movies for accountants teach about the importance of ethics in a world driven by greed and financial power.
  5. Small Business

    5 Lessons From The World's Biggest Bankruptcies

    We can learn of investing strategies by studying previous financial disasters.
  6. Investing

    Detecting Financial Statement Fraud

    Find out how to tell if a company is manipulating its financial data, so you don't invest in the next Enron.
  7. Investing

    Are Your Stocks Doomed?

    When a company is headed for trouble, the warning signs are usually there. Learn how to spot disaster.
  8. Investing

    The Biggest Stock Scams Of All Time

    Where there is money, there are swindlers. Protect yourself by learning how investors have been betrayed in the past.
  9. Investing

    The Big Merger Fell Through – Now What?

    Employees who own stock or stock options at their employer need to be aware of these pitfalls if a merger or acquisition falls through.
  10. Insurance

    The Ghouls And Monsters On Wall Street

    Learn about some of the creepiest cases of fraud and the characters behind them.
RELATED FAQS
  1. What are some high profile cases of companies who failed to be socially responsible?

    Learn about corporate social responsibility. Explore how Enron's lack of corporate responsibility ultimately destroyed the ... Read Answer >>
  2. What stock factors should you consider when a company makes a CEO change?

    Learn about factors affecting the price of stock following a change in CEO. Explore why a change in CEO may be positive or ... Read Answer >>
  3. What are examples of inherent risk?

    Explore two famous examples of inherent risk with the collapse and ultimate bankruptcy of Lehman Brothers and the downfall ... Read Answer >>
  4. Where did market to market (MTM) accounting come from?

    Find out how mark to market accounting originated and how it has been forced to evolve to eliminate subjectivity from financial ... Read Answer >>
  5. What sectors have higher exposure to inherent risk?

    Learn how inherent risk in certain sectors, such as financial services, banking, energy and utilities, can pose significant ... Read Answer >>
  6. What was the Mahonia company and why did it become the subject of a lawsuit?

    In 1992, J.P.Morgan went into the energy trading business by creating a venture company called Mahonia Limited. At least, ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center