What does the Sarbanes-Oxley Act primarily aim to achieve?

The Sarbanes-Oxley Act, enacted in 2002, primarily aims to protect investors from fraudulent financial reporting by corporations. This legislation was introduced in response to major financial scandals, including Enron and WorldCom, where misleading accounting practices resulted in significant investor losses and eroded public trust in financial markets.

By implementing stricter regulations on financial disclosure and corporate governance, the act enhances the accuracy and reliability of corporate disclosures. Key provisions include establishing new standards for corporate accountability, increasing penalties for fraudulent financial activity, and requiring greater oversight by boards of directors and external auditors.

This focus on ensuring transparent and trustworthy financial reporting directly addresses the needs of investors by creating a safer investment environment, making it essential for the integrity of the financial system. The other options, while related to business and investment in some contexts, do not accurately reflect the primary objective of the Sarbanes-Oxley Act.