Most Criticism of the Sarbanes-Oxley Act Focuses on

question 62

Multiple Choice

Most criticism of the Sarbanes-Oxley Act focuses on

• A) the excessive cost of compliance.
• B) inadequate penalties for violations.
• C) diminished competitiveness of U.S. corporations in international markets.
• D) decreased confidence in financial reporting.

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Definitions:

Market Price

The contemporary market price for transactions involving an asset or service.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity.

Par Value

The face value of a bond or stock as stated by the issuing company, which has little effect on the market value but can have legal implications.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.