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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPresident Donald Trump wants to do away with the quarterly earnings report.
In a post on Truth Social, Trump said securities regulators should stop requiring companies to issue financial reports every three months and instead switch to a six-month reporting period. The Securities and Exchange Commission has required publicly traded companies to report on a quarterly basis since 1970.
“This will save money, and allow managers to focus on properly running their companies,” Trump wrote.
Trump asked the SEC to examine the three- versus six-month reporting requirement during his first term. No change was made.
Last week, the Long Term Stock Exchange said it planned to petition the SEC to do away with the quarterly requirement. The San Francisco-based exchange lists companies focused on long-term goals.
Supporters of the change say quarterly reporting is too costly and time-consuming and discourages companies from wanting to go public. They also say company executives focus too much on hitting quarterly earnings targets and not enough on long-term planning.
Those who favor quarterly earnings say the reports provide investors with valuable financial updates and make them aware of any new risks a company is facing.
Trump contrasted the U.S. 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.
Trump in his first White House term also floated having companies change their quarterly reporting to a six-month schedule.
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LOL there’s no way this is just a desire to do really messed up things without oversight, right?
Depends on how long you as an investor believe the corporations in which you hold stock should tell you or your investment advisor how they are doing…if six months is preferable to quarterly, would annually be preferable to semi-annually? How long should the owners have to wait to find out how the companies they own are doing? I bet management knows, because they are busy figuring bonuses and raises and such…
Are companies compiling their earnings relying on an elderly bookkeeper wearing a green eyeshade who uses a quill pen to make entries in a leather-bound ledger?
No, everything is computerized (and will be more so with AI in a matter of seconds). It isn’t a burden to issue quarterly earnings reports, which bring a measure of transparency and accountability to investors.
Typical of Trump to want less transparency and accountability. Hopefully the SEC will ignore Trump on this issue.
Many investors are small money people who buy stock to preserve and sercure future value. They deserve to know the progress of the company they own. The CEOs of these large companies keep rawsing salaries and offering stock incentives to the key officers and board members. The little guy doesnt matter to them. But again, a lot of stock is owned by the little guy or the funds in which they have their money. What is wrong with being open to these investors?
Understandable why Trump would not want any of his investors to understand the value or progress. Past bankruptcies tell that story.
Trump would only say such a thing if he believes quarterly earnings reports are bad for him. Like, if they gave early evidence that his economic policies are trashing the economy. He clearly opposes any data that reveals his incompetence in leading the economy. Hmm…
Certainly, there are companies that arguably pay too much attention to quarterly earnings and not enough to longer-term matters, but that imbalance of attention is a concern for what shareholders feel about the governance of those companies, and none of Trump’s business.
Ditto.
According to CNBC This morning – the US is the only country that requires quarterly reports – most other countries are twice a year or less.