Summary
President Trump suggested that public companies should report their earnings every six months instead of every three months. The idea aims to reduce costs for companies and allow them to focus on long-term goals. However, some experts are concerned this change could reduce transparency and increase financial risks.
Key Facts
- Public companies currently report earnings every three months, which is known as quarterly reporting.
- President Trump proposed changing this to every six months to save money and focus on long-term management.
- Some executives support the change, arguing that quarterly reports lead to short-term thinking.
- Critics, including finance experts, worry that less frequent reporting could decrease transparency for investors.
- There are concerns that this change could lead to more illegal activities due to fewer oversight opportunities.
- The Securities and Exchange Commission (SEC) requires quarterly earnings reports since 1970.
- Any change in reporting frequency would require time and regulatory action.
