The Securities and Exchange Commission (SEC) has proposed a plan encouraged by President Trump that would allow publicly traded companies to file earnings reports twice per year instead of quarterly.
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Forget margin or options. Here's how the pros trade QQQPublicly traded companies in the U.S. have been required to file quarterly reports since the 1970s. However, Trump argued that the rule shifts companies away from a long-term mindset and imposes excessive costs for businesses. “Did you ever hear the statement that, ‘China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???’ Not good!!!” he wrote in a Truth Social post last September.
Wall Street Pushes Back Against Biannual Earnings Proposal
The proposal is now open to a 60-day public comment period and has received plenty of pushback from Wall Street. Citadel’s Stephen Berger notes that quarterly earnings increase transparency for investors and contribute to accurate valuations. Hedge funds, including DE Shaw and Two Sigma, have signaled their disapproval for the proposal as well.
If approved, companies will be allowed to report either quarterly or biannually. The SEC has acknowledged that the proposal carries some risk, including “information asymmetry” and a loss of trust in markets.