When global capital markets collectively react to international events like Enron's collapse, it is common to find:

Question

Quizplus · Accepted Answer

When global capital markets collectively react to international events like Enron's collapse, there is often a reduction in capital available to companies with investment grade credit ratings as investors become more risk-averse and demand higher returns on their investments. This is because events like Enron's collapse lead to a lower overall level of trust and confidence in the market, making investors more wary of investing in higher-risk assets.

When Global Capital Markets Collectively React to International Events Like