Article Review Essay Example | Topics and Well Written Essays - 750 words - 3

Article Review - Essay ExampleBut finally, despite its efforts, bright Technologies faced proficient charges under the Securities Exchange Act, 1934. Thus the article necessarily analyzes the damage control or recovery measures that the chief executive officer of the party took at a after stage to improve the transaction afterwards.Starting from 1966 Lucent became wizard of the global leaders in its concerned industry (telecomm). They manufactured products used for constructing copper line transmissions and switching, radiocommunication and optical gear and other communications networking infrastructure. Due to the great range and demand of the products manufactured, the fiscal performance of the company was quite good. It had been one of the investors choices until January 2000 when Lucent declargond that the revenue of the first quarter of the financial year 2000 would be lesser by 20 percent when year on year analogy is do. The financial analysts felt that though the comp any was lagging in the innovation part, competition had very fiddling to do with its financial downfall. It was a case where the company intentionally misinterpreted its accounts to misguide the investors for investing in their stocks. (The Lucent Accounting Scandal, 2005)The SEC charged Lucent for its misinterpretation of the accounts as a result of which the investors were misguided. The company intentionally made false and overstated forecasts, which attracted many investors at once. But eventually the company made contradictory statements revealing their true financial position. Meanwhile many investors had actually invested huge amounts in the shares of the company. tally to the federal law, showing inflated profits and making unrealistic forecasts in order to mislead investors are serious legal violation, which the company was ultimately alleged with. (Barnes and Bowers, 2007)Eventually the company failed to co-operate with Security Exchange Committee, and the later probed i nto the accounting