<P> In an attempt to achieve further growth, Enron pursued a diversification strategy . The company owned and operated a variety of assets including gas pipelines, electricity plants, pulp and paper plants, water plants, and broadband services across the globe . The corporation also gained additional revenue by trading contracts for the same array of products and services with which it was involved . This included setting up power generation plants in developing countries and emerging markets including The Philippines (Subic Bay), Indonesia and India (Dabhol). </P> <P> Enron's stock increased from the start of the 1990s until year - end 1998 by 311%, only modestly higher than the average rate of growth in the Standard & Poor 500 index . However, the stock increased by 56% in 1999 and a further 87% in 2000, compared to a 20% increase and a 10% decrease for the index during the same years . By December 31, 2000, Enron's stock was priced at $83.13 and its market capitalization exceeded $60 billion, 70 times earnings and six times book value, an indication of the stock market's high expectations about its future prospects . In addition, Enron was rated the most innovative large company in America in Fortune's Most Admired Companies survey . </P> <P> Enron's complex financial statements were confusing to shareholders and analysts . In addition, its complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance . </P> <P> The combination of these issues later resulted in the bankruptcy of the company, and the majority of them were perpetuated by the indirect knowledge or direct actions of Lay, Jeffrey Skilling, Andrew Fastow, and other executives such as Rebecca Mark . Lay served as the chairman of the company in its last few years, and approved of the actions of Skilling and Fastow, although he did not always inquire about the details . Skilling constantly focused on meeting Wall Street expectations, advocated the use of mark - to - market accounting (accounting based on market value, which was then inflated) and pressured Enron executives to find new ways to hide its debt . Fastow and other executives "created off - balance - sheet vehicles, complex financing structures, and deals so bewildering that few people could understand them ." </P>

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