The us security and exchange commission Transparency and regulatory burdens. , Photo Credit: Reuters/Brian Snyder
Wall street’s main regulator said it is “prioritizing” a proposal from donald trump to reduce the frequency of corporate earnings reports, after the president Again stepped into a long-ranking into aquette Over transparency in American capitalism.
The Securities and Exchange Commission said in a statement it is pursuing a proposal to “further eliminate unnecessary unheecessary regulatory burdens on companys.” The move followed a social media post by trump earlier monday calling for an end to the Quarterly Reports that Companies Issue to Share Financial Results with Investors.
Quarterly Reporting Mandated Since 1970 Post-1929 Crash
The sec mandated for companies to report Quarterly in 1970, part of its decades-long push to increase transparency Following the stock market crash in 1929. Reporting Cold Reshape Insen herself in the World’s Biggest Equity Market – Determining Whether Us Companies Stay Chained to the clock or win more freedom to focus on the long game.
“Subject to sec approval, companies and corporations should no longer be forced to” report “on a quarterly Basis (Quarterly reporting!), But raather to report on a ‘Six (6) Month Basis,” Month Basis, “Tramps SAID on social media. “This will save money, and allow manners to focus on properly running their companies.”
Shifting Away from Quarterly Reporting “Seems like a gigantic step backward,” said Nell Minow, Chair of Valueedge Advisors, which Consults Institutional Investors On CORPORATES GOVERATE GOVERATE GOVERATE GOVERATE GOVERATE GOVERATE GOVERATES GOVERATES GOVERATErs. Us markets have styed so robust because this level of transparency boots Trust, She Said.
But Critics have argued that such thing has been downsides. The Practice Increases Costs, Pushes Companies to Focus on the Short-Term-Hampering Investment and Innovation-and can lead to overreactions by investors, opponents say.
Whether Trump’s Intervention Sparks Serious Regulatory Change Remains to Be Seen, But His Comments Throw Fresh Political Fuel on a Debate that Goes to the Heart of the heart of how the us measuresures.
After Trump’s comments in 2018, the agency asked for public comment on Quarterly reporting, but didn Bollywood a change to requirements.
Nasdaq Backs Giving Firms Choice of Quarterly or Semi-Naval
Adena Fledman, Nasdaq Inc.’s Chair and Chief Executive Officer, Said the exchange supported reforms to reduce the burden on public companys, Including Giving Ferms the option to recriptions or semi-nanually, according to a statement on linkedin. The exchange proposed companies have been having the option to do semi-nnual reporting in a policy paper earlier this year.
Trump compared the US reporting process to china’s, suggesting that beijing had a system in place that was more efficient and cost-effective for businesses in that country.
In europe, most firms are only mandated to report every six months, but many still files Quarterly Results for Several Reasons, Investor Exactations.
Supporters of Quarterly Reporting Say it’s Necessary to Keep Investors Informed and Reduces The Chances of Market Manipulation.
“Companies Spend Far Too Much Time on the Churn of Quarterly Reporting,” said matt power, a longtime sports industry analyst and current Senior for BC CONSALTING. “On the other hand, you need to balance that with investors having enough good information to make intelligent decisions.”
‘Misses Get Bigger’
Shifting to reporting every Six Months Bost also boost Uncertain and Volatily on Earnings Results.
“While the goal would be to get investors and companies to become more long-term focused, it would increase uncertainty in the right market and clock lead to a lowering of Valuations,” Portfolio strategy at Newedge Wealth. “Earnings Season Moves Could also bear as Misses Get Bigger and More Consequational.”
Sec Chairman Paul Atkins has been a frequent critic of disclosures that many companies View as overly burdensome without providing significant benefits to sharefit to share
The agency included a posesible proposal on its recently-right regulatory ageda to “Rationalize disclosure practices”-a potanly wide-ringing topic that could was founded AD Measures.
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Published on September 16, 2025