The Sarbanes-Oxley Act of 2002 Established the Private Company Accounting

question 40

True/False

The Sarbanes-Oxley Act of 2002 established the Private Company Accounting Oversight Board (PCAOB) which is a for-profit corporation that oversees CEOs of public corporations.

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Definitions:

Mispriced Stocks

Stocks that are selling for a price significantly different from their intrinsic value, either overvalued or undervalued by the market.

Weak-Form Efficient

A form of market efficiency where all past trading information is already reflected in stock prices, implying that technical analysis cannot consistently produce excess returns.

Capital Market Efficiency

Capital Market Efficiency is a theory that suggests markets are efficient in processing information, and thus, security prices at any time fully reflect all available information.

Competition

The rivalry among businesses or within markets for customers, which can influence prices, product quality, and innovations.