How did Goldman avoid violation of SOX in advancing cash to two of its officers?
A) It made them a loan
B) It made them an interest-free loan
C) It purchased stock from the executives
D) It had them issue a promissory note

Question

Quizplus · Accepted Answer

Goldman avoided violation of the Sarbanes-Oxley Act (SOX) by purchasing stock from the executives instead of providing them with a loan. SOX prohibits companies from making personal loans to their directors and executive officers, but purchasing stock is not considered a loan.

How Did Goldman Avoid Violation of SOX in Advancing Cash