What legislative act shortened the amount of time allowed for insiders to register with the SEC?

What legislative act shortened the amount of time allowed for insiders to register with the SEC?

• A. Dodd-Frank Act
• B. Sarbanes-Oxley Act (SOX)
• C. Securities Act of 1933
• D. Glass-Steagall Act

Answer: (B)

The Sarbanes-Oxley Act (SOX) is the correct answer because it was enacted in response to corporate scandals and aimed to enhance corporate governance and accountability. One of its provisions specifically addressed the registration requirements for insiders, reducing the time frame in which they must register with the Securities and Exchange Commission (SEC) after a change in ownership of the company's securities. This was part of broader reforms intended to protect investors by ensuring greater transparency in financial reporting and corporate practices. The Dodd-Frank Act primarily focused on financial reform after the 2008 financial crisis, targeting issues related to consumer protection and systemic risk in the financial system, rather than specifically addressing insider registration timelines. The Securities Act of 1933 is concerned with the requirement of registration of securities offerings and preventing fraud but does not specifically shorten the insider registration period. The Glass-Steagall Act historically focused on separating commercial and investment banking to reduce risks to depositors and does not relate to insider trading regulations or SEC registration timelines.

The Sarbanes-Oxley Act (SOX) is the correct answer because it was enacted in response to corporate scandals and aimed to enhance corporate governance and accountability. One of its provisions specifically addressed the registration requirements for insiders, reducing the time frame in which they must register with the Securities and Exchange Commission (SEC) after a change in ownership of the company's securities. This was part of broader reforms intended to protect investors by ensuring greater transparency in financial reporting and corporate practices.

The Dodd-Frank Act primarily focused on financial reform after the 2008 financial crisis, targeting issues related to consumer protection and systemic risk in the financial system, rather than specifically addressing insider registration timelines. The Securities Act of 1933 is concerned with the requirement of registration of securities offerings and preventing fraud but does not specifically shorten the insider registration period. The Glass-Steagall Act historically focused on separating commercial and investment banking to reduce risks to depositors and does not relate to insider trading regulations or SEC registration timelines.