Sarbanes-Oxley Act and Financial Management Terms: Definitions and Business Organizations, Quizzes of Corporate Finance

Download Sarbanes-Oxley Act and Financial Management Terms: Definitions and Business Organizations and more Quizzes Corporate Finance in PDF only on Docsity! TERM 1 Sarbanes-Oxley Act DEFINITION 1 2002, also known as the 'Public Company Accounting Reform and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and more commonly called Sarbanes-Oxley, Sarbox or SOX, is a United States federal law that set new or enhanced standards for all U.S. If the firm is publicly owned, the CEO and CFO must both certify to the SEC. TERM 2 Financial Management DEFINITION 2 aka corporate finance, focuses on decisions relating to how much and what types of assets to acquire, how to raise capital needed to purchase assets, and how to run the firm so as to maximize its value TERM 3 Capital Markets DEFINITION 3 markets where interest rates, along with stock and bond prices, are determined. TERM 4 Investments DEFINITION 4 Relates to decisions concerning stocks and bonds and include a number of activities: Security analysis, portfolio theory, and market analysis TERM 5 Security Analysis DEFINITION 5 Deals with finding the proper values of individual securities. TERM 6 Portfolio theory DEFINITION 6 deals with the best way to structure portfolios, or "baskets", of stocks and bonds. Rational investors want to hold diversified portfolios in order to limit risks. TERM 7 Market Analysis DEFINITION 7 deals with the issue of whether stock and bond markets at any given time are "too high," "too low," or "about right." TERM 8 Behavioral Finance DEFINITION 8 Investor psychology is examined in an effort to determine if stock prices have been bid up to unreasonable heights in a speculative bubble or driven down to unreasonable lows in a fit of irrational pessimism is a part of market analysis. TERM 9 Main forms of business organizations DEFINITION 9 sole proprietorships, partnerships, corporations, limited liability companies, and limited liability partnerships TERM 10 Proprietorship DEFINITION 10 An unincorporated business owned by one individual.