Sarbanes-Oxley Act Of 2002 (SOX)
An act passed by U.S. Congress to protect investors from the possibility of fraudulent accounting activities by corporations. Investopedia Says:
The rules and enforcement policies outlined by the SOX Act amend or supplement existing legislation dealing with security regulations. The basic outline is as follows:
1. Establishment of a Public Company Accounting Oversight Board, where public companies must now be registered.
2. Strict auditor regulation and control by means of auditing committees and inspecting accounting firms.
3. Heightened corporate responsibility for any fraudulent actions taken.
4. Stricter disclosure within company financial statements, and ethical guidelines to which senior financial officers must adhere.
5. Guidelines for analyst conflicts of interest.
6. Authorities available to the Commission and the Federal Court, as well as required broker and dealer qualifications.
7. Enforcement methods available for punishment of activities deemed criminal by the Act. Related Terms:
Blue Sky Laws
Cook The Books
eXtensive Business Reporting Language - XBRL
Forensic Accounting
Internal Controls
Lady Godiva Accounting Principles - LGAP
Material Weakness
Public Company Accounting Oversight Board - PCAOB
Regulation Fair Disclosure - Reg FD
Voodoo Accounting Philadelphia Semiconductor Index (SOX)
A price-weighted index composed of 18 U.S. semiconductor companies primarily involved in the design, distribution, manufacture, and sale of semiconductors. Investopedia Says:
This is a closely watched index for "chip" stocks. Options on the SOX are among the more actively traded options contacts. Related Terms:
Option Contract
Semiconductor |