Final answer:
The exposure of fraudulent practices typically resulted in bankruptcy, legal actions, and severe financial setbacks for the involved parties, as opposed to any positive outcomes such as increased trust or market value.
Step-by-step explanation:
When the fraudulent practices were exposed, the financial repercussions for investors, stakeholders, and the company itself were typically severe. The exposure often led to bankruptcy and various legal actions. Most notably, the collapse of Lehman Brothers in September 2008 not only eradicated the prestigious investment firm but also instigated a financial panic, revealing other fraudulent practices like the pyramid scheme orchestrated by Bernard Madoff. The comprehensive fallout prompted a major overhaul of the financial system, including passing the Dodd-Frank Act to reform financial regulations and prevent such crises in the future.
The financial crisis affected not only individual institutions but also had widespread consequences, resulting in the failure of large commercial banks and the nationalization of Federal National Mortgage Corporation (Fannie Mae). Not only did the crisis obliterate stock values, reflected in historical market crashes, such as the Stock Market Crash of 1929, but it also left millions without their life savings due to bank failures. Thus, rather than leading to increased market value and trust, expansion and profitability, or merger and acquisition, the exposure of fraudulent practices generally culminated in financial disaster for all involved parties.