Stock Market Troubles

Accounting scandals at Enron and other large corporations rocked the financial world a few years ago. Now new problems are shaking up the stock market. The $7 trillion mutual fund industry is reeling from revelations that fund managers engaged in unethical trading practices to benefit themselves and a few select clients. Meanwhile, questions about the integrity of governance at the fabled New York Stock Exchange — the world's largest stock market — have led to new leadership and sweeping structural changes. But some analysts contend that the actions taken don't go far enough to protect investors. Others say recent market gains show that the corrective actions are working and that investors retain their faith in the overall integrity of the stock market.