Why Enron's Writedown Unnerves Some Investors

Enron is trying to improve disclosure to investors, but its decision to reduce equity by $1.2 billion in the third quarter has created dismay and confusion in the market.

The action was disclosed in a dubiously discreet manner. More important, investors are struggling to pinpoint how the shrinkage will affect Enron's balance sheet, profits and earnings guidance.

Enron didn't provide answers to questions submitted on the equity reduction. ...