SEC Wants to End Quarterly Reports, Companies May Report Only Twice a Year
The U.S. Securities and Exchange Commission (SEC) is planning a big change in company reporting rules. Right now, public companies in America must share their earnings every three months. But SEC Chair Paul Atkins says this may change. In the future, companies might only need to report results two times a year.
Atkins said rules should be simple. They should protect investors but not create extra pressure on companies. He also said Europe’s strict reporting rules cost a lot of money but don’t really help investors much.
Some investor groups are not happy with this idea. They say fewer reports will mean less information for people who invest, especially small investors. But Atkins believes that many countries already follow the six-month system, and it works fine there.
There is still no fixed date for this change. Atkins said that investors, banks, and the market itself will help decide what is best.
Impact:
If quarterly reports end, companies could save money and time. But investors might worry, because getting updates only twice a year could reduce transparency.