Enroned

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 housed one of ...
  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. Corporate Governance

    The system of rules, practices and processes by which a company ...
  6. Management Risk

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

    Why Enron Collapsed

    Enron’s collapse is a classic example of greed gone wrong.
  2. Personal Finance

    Enron: The Fall Of A Wall Street Darling

    Enron is a classic example of greed gone wrong and how investors were led astray.
  3. Professionals

    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.
  4. Personal Finance

    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.
  5. Investing

    Companies You Never Thought Would Go Bankrupt (RSHCQ, GM)

    Learn about some of the most shocking corporate bankruptcies in history, including General Motors, Chrysler, Lehman Brothers and Enron.
  6. Investing

    Who are Stakeholders?

    “Stakeholder” is used in commerce to describe any party who has an interest in a business or enterprise. Traditionally, stakeholders in a corporation are shareholders, employees, customers and ...
  7. Professionals

    Sizing Up A Career As A Ratings Analyst

    This competitive field is lucrative, but do you have what it takes to score this job?
  8. Investing

    Corporate Governance

    Corporate governance refers to the formally established guidelines that determine how a company is run. The company’s board of directors approves and periodically reviews the guidelines, which ...
  9. Investing

    5 Fortune 500 Companies That No Longer Exist

    Discover where the concept for the Fortune 500 list came from and learn about companies previously on the list that no longer exist.
  10. Credit & Loans

    Bankruptcy

    Learn what happens when an individual or an organization files for bankruptcy.
RELATED FAQS
  1. When is a bond's coupon rate and yield to maturity the same?

    Read about some of the major business risks assumed by Enron and Arthur Andersen, its accounting partner, before its infamous ... Read Answer >>
  2. 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 >>
  3. How did Enron use off-balance-sheet items to hide huge debts and toxic assets?

    Find out how Enron misused special purpose vehicles to hide mountains of debt prior to its infamous scandal and collapse ... Read Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center