Sarbanes Oxley Act 2002

Topics: U.S. Securities and Exchange Commission, Finance, Stock exchange Pages: 2 (915 words) Published: November 3, 2014
Sarbanes-Oxley Act of 2002 Cynthia Sanchez, ACC/561 George Bray University of Phoenix October 13, 2014 Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley (SOX) Act of 2002 was enacted in response to some very high profile, economy crippling, corporate fraud cases. The far-reaching consequences of these corporate frauds rattled America and the people demanded regulations and oversight to prevent these types of incidents in the future. Investors confidence has a direct impact on the countrys overall economic health and few investors are willing to risk their financial resources on a system that has no oversight. The purpose of this paper is to discuss the main aspects of the regulatory environment which will protect the public from fraud within corporations, namely the SOX Act of 2002. This will be done by evaluating the structure of the SOX Act and its impact on foreign investors, whether all public companies should be burdened with the sins of the few. Security Acts of 1933 and 1934 According to SEC.gov The Securities Act of 1933 is often referred to as the truth in securities law (with) two basic objectives Require that investors receive financial and other significant information concerning securities being offered for public sale and Prohibit deceit, misrepresentations, and other fraud in the sale of securities (Securities Act of 1933, (para. 1). It basically requires that transparent accurate information be given to investors before they invest, so they make informed business decisions. These regulations were not applied to securities being offered by a third party. There was also no way to enforce these regulations. The Securities Exchange Act of 1934 Congress created the Securities and Exchange Commission, giving them the power to register, regulate, and oversee third party agencies, and the New York Stock Exchange and American Stock Exchange. Some of the types of conduct that the SEC prohibits or monitors are corporate reporting, proxy...
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