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What Is the Impact of the Sarbanes-Oxley Act of 2002

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Essay

What is the impact of the Sarbanes-Oxley Act of 2002 (SOX)on public companies and public accounting firms?


Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business, rather than being distributed to shareholders as dividends.

Stock Split

A corporate action to increase the number of outstanding shares by issuing more shares to current shareholders, proportionally decreasing the stock price.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including both public investors and company insiders.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment or debt payment.

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