Which act focuses on increasing transparency into publicly traded corporations' financial activities?

The Sarbanes-Oxley Act is focused on increasing transparency in the financial activities of publicly traded corporations. Enacted in response to several high-profile corporate scandals, such as Enron and WorldCom, this legislation aims to protect investors by improving the accuracy and reliability of corporate disclosures. It introduced stricter regulations regarding financial reporting, requiring companies to implement internal controls and verify the accuracy of their financial statements.

The act also mandates the CEO and CFO to certify the financial reports personally, enhancing accountability and aiming to restore investor confidence. By setting higher standards for financial practices and corporate governance, the Sarbanes-Oxley Act serves to ensure that financial activities are transparent and that any discrepancies or malpractices are more likely to be identified and addressed promptly.