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The purpose of the Sarbanes Oxley Act
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The purpose of the Sarbanes Oxley Act is to keep large companies from
financial fraud and misleading it's stockholders and investors.
Essentially, it is there to protect the investors. The Sarbanes Oxley
Act will protect investors from losing their investment unfairly or
being misguided into investing in a certain company.
The Securities and Exchange Commission makes sure that companies report
and file their documents correctly and timely, again to prevent
misleading or inaccurate financial status. Company executives will have
to certify that these records are accurate and monitor disclosures. For
example, the Sarbanes Oxley Act will try to prevent scams
such as the Enron and Worldcom scandals.
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