Fair Funds for Investors

Fair Funds for Investors

A provision of the Sarbanes-Oxley Act that allows courts to extract funds from companies that have used aggressive accounting techniques to defraud investors in order to repay those investors. That is, if one suffers a loss because a company was conducting an illegal activity, the Fair Funds for Investors provision allows them to recover their losses from the company. This provision was enacted following the Enron scandal to maintain confidence in the stock market and to reduce risk for investors.
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Section 308, the Fair Funds for Investors provision, may eventually provide the most benefit to investors.