1 assume you are a financial analyst who works for a major brokerage company that is heavily invested i

In April 1997, Bre-X Minerals, a Canadian company, was supposedly one of the most valuable companies in the world. Bre-X had convinced numerous mining experts that they had rights to one of the largest gold deposits ever discovered. It was hailed as the mining find of the century. The gold mine, located on a remote island in the East Kalimantan Province of Indonesia, supposedly had so much gold that the actual price of gold on the open market dropped significantly due to the anticipation of an increased gold supply. Within a few months, thousands of Canadians—big-time investors, pension and mutual fund, managers and many small investors, including factory workers—got caught up in “Bre-X fever.” The company’s stock price shot from pennies to more than $250 per share before a 10-for-1 stock split was announced. Thousands of investors believed they were on the verge of becomingmillionaires.