Actions Taken Since September 2002 to Restore Investor Confi

There have been many actions taken by many different organizations to restore investor confidence in American Corporations since September 2002.It is now ordinary to talk about a catastrophe of investor confidence but the fact that it's a usual routine doesn't make it any less real, or any less tragic. Investing in the stock market today isn't a luxury or a concern of the idle rich; it's a necessity for all of us, and that's why a majority of Americans are now invested in our stock markets. A July NBC/Wall Street Journal poll showed that 70% of investors said they have no confidence that financial information from companies and investment houses is straightforward and honest.Many individuals have been disappointed with the stock market due to loss of money to those who rig the markets or game the system.The problems in our system need to be fixed as soon as possible.
The Securities and Exchange Commission has battled these problems for the past year.They are reforming their disclosure system and have adopted two rules required by Sabarnes-Oxley, which was an act passed just before September 2002.Thefirst rule requires CEO's and CFO's to certify that quarterly and annual reports reveal everything investors should know about their company.The rule is effective immediately and assures true liability of corporate leaders.They have also adopted rules speeding up deadlines for corporate insiders to report transactions in their company's securities, including transactions with their company. Corporate authority has become a prime concern of the SEC since the latest scandals, because it affects the quality of financial statements and the stability of companies, which are matters in which consumers have a long-lasting interest and a valid responsibility to deal with.Their corporate governance system requires that corporate leaders be realistic with the interests of shareholders and…

x

Hi!
I'm Sandulf

Would you like to get a custom essay? How about receiving a customized one?

Check it out