Prosecutors Grill Lay on Enron Short-Selling
Prosecutors challenge Enron founder Kenneth Lay's testimony that short-sellers were partly to blame for the company's collapse in 2001. As proof, lawyers showed that Lay's own son bet Enron's stock would drop.
Lay and former Enron Chief Executive Jeffrey Skilling have contended that short-sellers mounted a concerted attack on Enron stock that helped drive it into bankruptcy. Investors sell a stock "short" when they believe its value will go down.
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