Grading education companies
AP
Companies that run for-profit colleges and universities tumbled this week after the government launched an “informal inquiry” into the accounting practices at one of the biggest companies in the industry.
The Securities and Exchange Commission said it was reviewing the practices at Apollo Group, which runs the University of Phoenix chain.
Analysts said the issue is specific to Apollo, but shares of a variety of for-profit education companies fell throughout the week.
SEC inquiries often end without finding harm. Still, the probe comes at a time when the government is closely scrutinizing the industry.
During a Congressional hearing earlier this month, an inspector general of the Education Department said the government would continue to investigate schools’ attendance-tracking methods and financial aid practices
In trading for the day, Apollo shares fell $1.05, or 1.8 percent, to $57.10. Shares of Devry, another education company, dropped 15 cents, or 0.3 percent, to $55.29.
Associated Press
