Final answer:
The Sarbanes-Oxley Act, following accounting scandals, requires insiders to file transactions electronically within two business days to ensure transparency and protect investors. This provision is part of broader measures to increase confidence in financial data from public corporations.
"The correct option is approximately option A"
Step-by-step explanation:
The Sarbanes-Oxley Act was enacted in response to a series of major accounting scandals by corporations such as Enron, Tyco International, and WorldCom. The purpose of the act is to increase confidence in the financial information provided by public corporations and to protect investors from accounting fraud. One of the requirements of this act is regarding the reporting of insider transactions.
According to the Sarbanes-Oxley Act, insiders must file information pertaining to their transactions electronically within two business days of the transaction. This requirement provides transparency and prompt notification to the market and helps maintain fairness among all market participants. Compliance with these reporting requirements is critical, as it ensures that all stakeholders have access to relevant information that may affect their investment decisions.
This legislation falls under the purview of the Securities and Exchange Commission (SEC), which oversees and enforces federal securities laws. The SEC also establishes the legal standards for disclosure of information relevant to publicly traded securities, further ensuring investor confidence in the market. The timely requirement of insider reporting as stated in the act reflects an effort to improve regulatory oversight following historical regulatory criticism, especially in periods such as the 2008-2009 recession when bank regulators were scrutinized for not identifying financial problems earlier.