Which One of the Following Best Describes the Primary Intent

question 14

Multiple Choice

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

• A)Decrease the number of corporations that can be publicly traded
• B)Increase the protections against corporate fraud
• C)Limit secondary issues of corporate securities
• D)Increase the dividends paid to shareholders
• E)Increase the number of firms that "go dark"

---

Definitions:

Firm-specific Risk

The portion of an asset's risk that is attributable to the company's individual factors, uncorrelated with general market movements.

Nonsystematic Risk

The part of an investment's risk that is specific to the investment, unrelated to the market's overall movements.

Diversification

The strategy of spreading investments across various financial assets to reduce exposure to risk.

Uncorrelated

Refers to two or more variables that do not have any predictive relationship with each other.