Summary
Former President Trump proposed that U.S. public companies report their earnings every six months instead of every three months. The Securities and Exchange Commission (SEC) is looking into this idea as a way to lessen regulatory demands and costs for companies. The proposal has sparked debate about corporate transparency and long-term planning.
Key Facts
- Trump suggested companies report earnings twice a year instead of quarterly.
- The SEC, led by chair Paul Atkins, is prioritizing this proposal.
- Public companies currently report earnings every 90 days, a practice in place since 1970.
- Quarterly reports require companies to disclose detailed financial information to shareholders.
- Some business leaders argue that less frequent reports could help focus on long-term goals and reduce costs.
- Others believe frequent reports help investors make better financial predictions.
- The SEC considered a similar change during Trump’s first term but did not implement it.
- Changing the reporting schedule requires several regulatory steps.
