Name: This Is Why Boeing Shares Are Dropping
Uploaded: 2016-02-11
Duration: 1 min 2 s
Description: Shares dropped more than 11%.

Boeing shares dropped more than 11 % after a report that the aerospace corporation is being investigated by the Securities and Exchange Commission. Bloomberg reports the SEC, is looking into the program accounting practices that led to profit forecasts for it's 787 dreamliner and the 747. This form of financial reporting is often used by companies looking to cushion the impact of manufacturing costs. By spreading them over several years. The practice is fairly common, but the SEC will monitor for signs of potential abuse. The roll out of the 787 dreamliner has been a challenge, due to costly delays and technical issues. There has also been a dip in 747 sales. In contrast to the companies optimistic sales forecasts, these issues and Boeing's claims of a decline in production costs. Might have been red flags for the SCC. Following reports of the alleged probe, Boeing stocks fell to its lowest intraday prices in over two years. For now, the company is staying mum about in any potential investigation. A spokesperson for the company told Fortune, we typically do not comment on media inquiries on this nature.