The Sarbanes-Oxley Act was designed to protect

Question

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The Sarbanes-Oxley Act was designed primarily to protect shareholders from the excesses and failed oversight of firms. It was implemented in response to a wave of high-profile corporate scandals, such as Enron and WorldCom, which showed that insufficient regulation and oversight had resulted in losses for shareholders and other stakeholders. The act introduced a range of reporting and disclosure requirements for publicly traded companies, as well as protections for whistleblowers and increased penalties for corporate fraud. The aim was to improve corporate governance and promote transparency, ultimately enhancing investor confidence in the markets.

The Sarbanes-Oxley Act Was Designed to Protect