The SEC proposed that firms would only have to provide information on a semiannual basis. Yes, it is a burden on companies to provide quarterly reports, but what makes US markets so liquid and effective for all investors is that corporate information is readily available. Now, there may be some companies that pause about going public because of SEC regulations, but the solution is not to cut the amount of information provided to investors. Could there be a tightening of rules on what information is made available? Yes, this may be helpful, but cutting out core information by half is not the solution.
Goldman Sachs, based on survey data, found that almost 100% of respondents oppose the move to semi-annual reporting. The four leading reasons include transparency, timeliness, and protection. Do not change what most seem to believe is not broken. What are the people at the SEC thinking?
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