Wildcatting is the practice of searching for oil and gas deposits in untested areas. It requires drilling test wells to determine whether or not the area has any promising natural resources. The practice has become much more prevalent since the Sarbanes-Oxley Act of 2002, which established stricter requirements for public companies to provide informed disclosures to shareholders.

In addition to giving investors access to comprehensive information, the act also includes a provision called "wildcatting" to ensure that industries, as a whole, can remain in compliance. This practice calls for the review of an entire industry when critical problems are found with one or two companies. It allows regulators to identify potential toxic relationships between businesses, and prevent problems from spreading to other companies in the sector.

When serious violations are suspected within a sector, the SEC can solicit data from other firms in the same industry to assess their accounting practices and gain a better understanding of their financial dealings. Companies are required to respond to the SEC inquiries in a timely fashion.

By requiring companies to be accountable for their behavior, wildcatting promotes greater transparency among publicly traded companies and helps protect investors. Knowing that their investments could be scrutinized if something goes awry can help to make companies more cautious about their activities. Wildcatting gives regulators the ability to mitigate any potential broader consequences from fraudulent or irresponsible business practices.

Wildcatting is an important part of the regulatory framework for ensuring the integrity of publicly traded companies. It's designed to reduce the risk of fraud and encourage businesses to report accurate financial information. At the same time, it encourages companies to maintain rigorous controls over their finances, increasing public trust and providing greater transparency for investors.