Trump Supports Semiannual Earnings Reports: What It Could Mean for Stocks
Former President Donald Trump has renewed his push for U.S. companies to report earnings every six months instead of the usual three months. He says this change could lower costs for businesses and allow managers to focus more on long-term growth.
Supporters, including the Long-Term Stock Exchange (LTSE), believe less frequent reporting could help companies prioritize long-term strategies over short-term market reactions. This may encourage more stable business planning and growth.
However, critics warn that semiannual reporting could reduce transparency for investors. With fewer updates, it may be harder for investors to track company performance, which could increase market risks and uncertainty. Some also fear it might give insiders more room to act on information not available to the public.
The U.S. Securities and Exchange Commission (SEC) would need to approve any change, and it would require a formal process. If implemented, this move could bring the U.S. closer to countries like the UK and parts of Europe, where semiannual reporting is already standard.
Impact:
Stocks might see less short-term volatility if semiannual reporting is adopted. However, investor decisions could become harder due to fewer updates, potentially affecting market transparency and confidence.
