sarbanes oxley act summary?_______________________________________Advertisement If you read about the Enron scandal in the news in the early 2000’s, you no probably have also read about the sarbanes oxley act summary act that was enacted by American federal law legislation in response, but you may not be aware of hwy the law was originally passed and now six years later what the consequences of the often criticized act are. The purpose of sarbanes oxley act summary was to place tighter restrictions on big business, accounting firms, and other business traders who were involved in the public sector of the securities market so that public interests and investors interests would be better protected. After Enron, Adelphia and other big business firms used insider trading and hedge trading to topple the value of the public’s individual shares in the securities market, the government decided the purpose of sarbanes oxley act summary would protect individuals from losing their investments again. This was supported but sarbanes oxley act summary by greatly strengthening the laws affecting big business so that big business would not only be aware of their new restrictions, but of the larger criminal penalties they would face. Another purpose of Sarbanes Oxley was to help rebuild the public sector of the securities market and help it gain its original higher share value in the marketplace. This is one area in which it faces high criticism as many people do not believe that the act actually meets the purpose of sarbanes oxley act summary at all claiming the act simply was lodged at taking away individual rights of the business which is an argument that goes back to Franklin Roosevelt’s days. It is the age old argument if government has a right to govern big business or not, even when individual’s holdings are involved. Some who think the purpose of sarbanes oxley act summary has worked, say that big business is misusing individual share holders trust, that the government should have the right to step in and enforce reform on business and legislate and control it agree with the passing of sarbanes oxley act summary and that it has worked effectively. However, on the other side, opponents argue that the purpose of sarbanes oxley act summary failed because many businesses have stepped out of the securities market because they did not want to comply with the legislation thus making share market value drop even lower for individuals. They also claim that it prevents a business from being able to compete internationally which also hurts the market in general for individual investors. |