Badwill

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The negative effect felt by a company when shareholders and the investment community find out that is has done something that is not in accordance with good business practices. Although typically not expressed in a dollar amount, badwill can play out in the form of decreased revenue, loss of clients or suppliers, loss of market share and federal indictments for any crimes committed. 

Investopedia Says:
There are several cases in which badwill caused a severe downturn in company stock, such as Tyco, Adelphia, Martha Stewart, Enron and Worldcom. In each new bull market, we are likely to see the same offenses committed by new people. This phenomenon has caused a rise in "socially conscious" investing, where companies promoting badwill are excluded as a matter of policy.

Related Links:
We go over how to determine whether a measure of this important but hard-to-price intangible asset is justified. Can You Count On Goodwill?
Learn the legwork involved in finding out whether your investment can weather a storm. Playing The Sleuth In A Scandal Stock
Search for the "bloody" fingerprints in accounting crimes. Common Clues Of Financial Statement Manipulation
Where there is money, there are swindlers. Protect yourself by learning how investors have been betrayed in the past. The Biggest Stock Scams Of All Time


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