What is the Sarbanes-Oxley Act and how does it related to securities fraud?

The Sarbanes-Oxley Act, also known as the SOX Act, was passed by Congress in 2002 and is meant to protect investors from securities fraud. The Act establishes measures to protect investors by setting standards for publicly traded companies. It also requires companies to keep better records and more accurate financial reporting. The SOX Act imposed stricter rules for corporate governance and disclosure of financial data and transactions, which helps reduce the risk of securities fraud. The SOX Act requires publicly traded companies to accurately report information to their shareholders and the SEC. It also increases the criminal and civil punishments for securities fraud. The Act sets new standards for all U.S. public company boards, management and public accounting firms to have greater accountability. It also limits the ability of auditors to perform services for the companies they are auditing. The SOX Act is important for protecting investors from securities fraud because it imposes standards for accuracy, accountability and responsibility to prevent fraudulent activities. It also helps to reduce fraud by providing harsher punishments for securities fraud. The SOX Act is beneficial for both investors and corporations because it ensures accuracy in financial information and helps to protect both parties from securities fraud.

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What is the Sarbanes-Oxley Act and how does it related to securities fraud?

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