The main reason for the recent migration of a large number of firms from public-to-private ownership is
A)blue-sky laws.
B)the Sarbanes-Oxley Act.
C)International Accounting Standards (IAS).
D)the advent of shelf registration.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act, which was passed in the wake of the Enron and WorldCom scandals, imposed strict regulations on public companies in the US, including costly requirements for financial reporting, internal controls, and disclosure. As a result, many companies have decided to go private to avoid these regulatory burdens and the associated costs.

The Main Reason for the Recent Migration of a Large