Sox Article

In: Business and Management

Submitted By jahsin
Words 868
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SOX Summary
Jason Garrett
LAW/421
1/12/2014
Instructor: JANE SCHNEIDER

The Securities and Exchange Commission was created to hold companies accountable for reporting their current state of financial information on a statement to give the market and investors a snap shot of the company health. This basic legislation of 1933-1934 Securities Act was very basic when you fast forward six or several decades later since that Act there were legislation drafted twice one in 70’s and in the other in the early 90’s. They were introduce to improve on the Securities Acts of ’33 and ‘34 to curt tail newly created unethical practices the rear their head over the course of time but with no new legislative to combat it when it occurred there was no way to control them either. These drafts of new financial regulations were created to add on to the previous Acts to control these new and various forms fraud, falsifying and manipulations by corporations.
The draft act of ‘70 did not see the day of light but the one draft in the ‘90s almost made it but was pulled at the last minute and boy that was the one that could have changed what would later change the course of financial history. Unfortunately these legislatives never passed mainly due to the climate in the mid-nineties when making money was so easy from loading up corporations, dotcoms and startups, no one from CEO’s to most politicians did not want more financial regulations. In the late 90’ going into ’00, or before the Sarbanes-Oxley Act of 2002, The Sweeney (2012) website, more than 150 companies who engaged in the manipulation of stock-option grants, taking advantage of lax reporting rules, grantees cherry-picked the lowest stock price during the previous 90 days before cashing out at higher stock prices and maximizing their take.
According to the article, The Sweeney (2012) website, there was a spate of corporate…...

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