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SEC weighs cutting corporate reporting from quarterly to twice yearly

Yahoo Finance AI2d ago3 min read
SEC weighs cutting corporate reporting from quarterly to twice yearly

Key takeaway

The SEC is considering a proposal to let public companies report financial results only twice a year instead of four times. The Motley Fool argues this would harm investors by reducing transparency and making surprises larger when information finally arrives, and is urging shareholders to tell the SEC they value quarterly updates.

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3 Key Points

  • What happened

    The Securities and Exchange Commission is considering a proposal that would allow public companies to reduce regular reporting from four times a year to two. The Motley Fool and its listeners are writing to the SEC to oppose the change, arguing that transparency matters.

  • Why it matters

    The body explains that less transparency does not reduce uncertainty — it increases it. When information finally arrives after longer gaps, surprises tend to be bigger. For owners of public companies, reduced official updates mean less regular communication about products launched, customers won, and strategy changes happening every day.

  • What to watch

    The SEC is considering this proposal in late June and early July 2026. The Motley Fool is encouraging investors to contact the SEC directly to express their preference for quarterly updates.

FAQ

What is the SEC proposing to change?
The SEC is considering allowing public companies to reduce their regular reporting from four times a year to just two times a year.
What argument does the Motley Fool make against the proposal?
The Motley Fool argues that less transparency increases uncertainty rather than reducing it, and that bigger surprises tend to arrive when information finally comes after longer gaps. They believe owners of companies deserve regular communication about what is happening in their businesses.

Discussion

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