Financial Management Essay Example | Topics and Well Written Essays - 500 words - 6

Financial Management - Essay Example The company continues to be on the rise according to the FIA report of 2010. The report that was published on March 2011 reveals that contracted traded in NYSE Euronext experienced a rise of 24.6% in the FY2010 to reach 2.155 contracts (Heckman, 2009) The NYSE is the world’s largest company in terms of cash equities exchange. It has been in operation for about 215 years, and its dealings are in capital formation, whereby the company serves institutional and individual investors, the trading movement and its listed companies. By the end of 2006, over 2700 users (operating companies, exchange traded funds and closed end funds) were listed in the corporation. These listed companies represented the global market capitalization of over b$25 trillion. Ever since, the company has enhanced its reputation in cash equities exchange. As compared to the rest, Euronext is an extremely new financial entity, which was formed in 2000 (Brigham, 2009). The governance of NYSE Euronext is by a board of directors that is elected manually. A majority of these directors are independent while the rest of the team comprises of a CEO, deputy CEO, non executive chairman and deputy chairman. The markets of the company are regulated according to local requirements. When the merger was done, it was agreed that there would be no additional requirements for all the listed companies. This was to guard the company from American Law especially, the Sarbanes-Oxley Act. The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act is an enactment of 2002 is a federal law that governs corporate finance. The law was enacted after many high ranking companies including WorldCom and Enron were implicated in corporate accounting scandals. The Act brought reform into American business and enhanced criminal penalties for any company that destroys, falsifies,