Multiple Choice QuestionWhich act, passed almost unanimously by Congress in the early 2000s, criminalized securities fraud and strengthened penalties for corporate fraud?Multiple choice question.Sarbanes-OxleyThe Clayton ActSherman Anti TrustDodd Frank
Question
Multiple Choice QuestionWhich act, passed almost unanimously by Congress in the early 2000s, criminalized securities fraud and strengthened penalties for corporate fraud?Multiple choice question.Sarbanes-OxleyThe Clayton ActSherman Anti TrustDodd Frank
Solution
The correct answer is Sarbanes-Oxley. This act was passed in 2002 in response to financial scandals involving Enron, WorldCom and others. It introduced major changes to the regulation of corporate governance and financial practice. The Clayton Act and the Sherman Anti Trust are antitrust laws passed in 1914 and 1890 respectively, and the Dodd Frank was passed in 2010 to regulate the financial industry after the 2008 crisis.
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