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Sarbanes Oxley does hurt the IPO market, but for good reasons. It serves to protect public investors from unscrupulous accounting. Expensing stock options has been part of the International accounting standards for a while now and makes sense. Otherwise, you've hidden a lot of your costs from your financial statements. Also, forcing companies to acknowledge their special purpose entities prevents companies from hiding their debts. The article's point about "made sure that corporate directors would never again have financial privacy" is wrong. Financial transparency is always desired. Investment banks have to worry about the cost of exposing their strategy when buying & selling, why should managers be different considering they have a lot of insider information in their heads.

SOX is bad for statups, but not for those reasons. The cost of compliance for smaller companies is too great in comparison to their income. The entire SOX shouldn't be brought down, it should be made more friendly for smaller corporations and an effort is already being made (see wikipedia under heading SOX 404 and smaller public companies)

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