Editing Enron (section)

===Peak and decline of stock price===
In August 2000, Enron's stock price attained its greatest value, closing at $90 on the 23rd.<ref name=mclean />{{rp|244}} At this time, Enron executives, who possessed inside information on the hidden losses, began to sell their stock. At the same time, the general public and Enron's investors were told to buy the stock. Executives told the investors that the stock would continue to increase until it attained possibly the $130 to $140 range, while secretly unloading their shares.

As executives sold their shares, the price began to decrease. Investors were told to continue buying stock or hold steady if they already owned Enron because the stock price would rebound shortly. Kenneth Lay's strategy for responding to Enron's continuing problems was his demeanor. As he did many times, Lay would issue a statement or make an appearance to calm investors and assure them that Enron was doing well.<ref name="Enron">{{cite web|url=http://www.insidersense.com/enron|website=InsiderSense.com|title=Enron Insider Sales Roster|url-status=dead|archive-url=https://web.archive.org/web/20150925132340/http://www.insidersense.com/enron|archive-date=September 25, 2015|access-date=September 6, 2017}}</ref> In March 2001 an article by [[Bethany McLean]] appeared in ''Fortune'' magazine noting that no one understood how the company made money and questioning whether Enron stock was overvalued.<ref>{{cite news|title=Enron scandal brings overdue scrutiny of stock analysts|date=March 25, 2002|newspaper=USA Today}}</ref>

By August 15, 2001, Enron's stock price had decreased to $42. Many of the investors still trusted Lay and believed that Enron would rule the market.<ref>{{cite web|url=https://money.cnn.com/2001/11/29/investing/q_enronanalysts/|title=Where Wall Street went wrong| website=CNN|date=November 29, 2001|first=Paul R.|last=La Monica|place=New York|access-date=July 20, 2017}}</ref> They continued to buy or retain their stock as the equity value decreased. As October ended, the stock had decreased to $15. Many considered this a great opportunity to buy Enron stock because of what Lay had been telling them in the media.<ref name="Enron" />

Lay was accused of selling more than $70 million worth of stock at this time, which he used to repay cash advances on lines of credit. He sold another $29 million worth of stock in the open market.<ref>{{cite news|url=https://www.nytimes.com/2002/02/16/business/enron-s-many-strands-ex-chairman-s-finances-lay-sold-shares-for-100-million.html|title=Enron's Many Strands: Ex-Chairman's Finances; Lay Sold Shares For $100 Million|work=The New York Times|date=February 16, 2002|access-date=July 20, 2017|last1=Norris|first1=Floyd|last2=Barboza|first2=David}}</ref> Also, Lay's wife, Linda, was accused of selling 500,000 shares of Enron stock totaling $1.2&nbsp;million on November 28, 2001. The money earned from this sale did not go to the family but rather to charitable organizations, which had already received pledges of contributions from the foundation.<ref>{{cite web|date=November 17, 2004|url=https://www.nytimes.com/2004/11/17/business/enron-inquiry-turns-to-sales-by-lays-wife.html|title=Enron inquiry turns to sales by lay's wife|work=The New York Times|access-date=July 20, 2017}}</ref> Records show that Mrs. Lay made the sale order sometime between 10:00 and 10:20&nbsp;am. News of Enron's problems, including the millions of dollars in losses they hid, became public about 10:30 that morning, and the stock price soon decreased to less than one dollar.

Former Enron executive Paula Rieker was charged with criminal insider trading and sentenced to two years probation. Rieker obtained 18,380 Enron shares for $15.51 a share. She sold that stock for $49.77 a share in July 2001, a week before the public was told what she already knew about the $102&nbsp;million loss.<ref>{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2006/10/06/AR2006100600135.html|title=Ex-Enron exec gets two-year probation|newspaper=The Washington Post|date=October 6, 2006|access-date=July 20, 2017}}</ref> In 2002, after the tumultuous fall of Enron's external auditor, and management consultant, Andersen LLP, former Andersen Director, John M. Cunningham coined the phrase, "We have all been Enroned."

The fallout resulted in both Lay and Skilling being convicted of conspiracy, fraud, and insider trading. Lay died before sentencing, Skilling got 24 years and 4 months and a $45 million penalty (later reduced). Fastow was sentenced to six years of jail time, and Lou Pai settled out of court for $31.5 million.<ref>{{cite web|url=http://www.insidersense.com/blog/2015/9/22/swimming-with-sharks|title=Swimming With Sharks|website=InsiderSense.com|date=September 22, 2015|url-status=dead|archive-url=https://web.archive.org/web/20150925132323/http://www.insidersense.com/blog/2015/9/22/swimming-with-sharks|archive-date=September 25, 2015}}</ref>