American Investors Not Wanted

from the stay-home dept

The Sarbanes-Oxley legislation was designed to prevent the type of corporate fraud that made headlines in the earlier part of this decade (mostly leading to slaps on the wrists for those actually responsible). However, so far, it’s not clear it’s done very much to actually prevent fraud, but has done plenty to harm business and innovation. We’ve discussed a few times the Sarbanes-Oxley “innovation tax” where small companies are spending ridiculous sums in “cover your ass” expenses that do little to actually stop scams. Now, there’s further fallout as foreign companies with over 300 American investors are being required to meet the Sarbanes-Oxley requirements as well — leading many to buy back shares from all of their American investors (BugMeNot required, unfortunately). In other words, not only is it costing companies money that could go towards innovation and failing to reduce the likelihood of scams, it’s also closing off investment opportunities for American dollars. That doesn’t seem particularly helpful.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “American Investors Not Wanted”

Subscribe: RSS Leave a comment

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...