Sec Investigation of Worldcom Essay
WorldCom became a telecommunications giant following its 1998 acquisition of MCI Communications Corp. which provided local and international telecommunications services, such as voice, data, paging services, and Internet access (Internet Services, 2011). WorldCom was now able to provide services over its own network of fiberoptic cables located in major cities, as well as some between the United States and the United Kingdom. In 2000, WorldCom organized into two divisions: MCI Group, which concentrated on the consumer market including dial-up Internet services, and WorldCom Group, which managed networking, data, and Internet operations (Internet Services, 2011).
WorldCom’s success acquiring other companies and creating some of the largest telecommunications mergers in history had investors taking notice and purchasing stock in the company. Rising stock prices gave the company financial leverage and allowed it to purchase more companies. The stocks highest trade was near $65 in 1999. The pressure on WorldCom to keep the stock high and maintain its success was the beginning of its fraudulent accounting practices. The company had over 20 million consumer customers, thousands of