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US SEC preparing to scrap quarterly reporting requirement

reuters.com

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Re: US SEC preparing to scrap quarterly reporting requirement

#201

Post by ang_cire »

mcoliver wrote: post #194
munificent wrote: post #182

Earlier quoted context omitted.

> if companies reported dollars in and dollars out live to shareholders at least we would have an idea of how the company is doing in a general sense. Goodhart's law is knocking on your door right now.

Help me understand what you are saying here. For those that don't know this one is "a measure becomes a target, it ceases to be a good measure". I'm not advocating for a single metric that can be gamed. A business is fundamentally about dollars in and dollars out. Maybe add receivables in there and a few other metrics from the P&L. I'm not trying to be prescriptive here on purely cash in and out. I do think there is…

Dollars/receivables in and dollars/deliverables out is just a question of rate, unless I'm missing something.

If a 10 billion dollar company has a per-second dollar out/in rate of $1,000,000 due to actual organic business, a company with $2,000,000 can set up an LLC it buys and sells from, and legally 'swap' $1,000,000 a second back and forth in services "bought and sold" to mimic the appearance of the $10B company, to generate business interest/confidence/investment.

That's an extreme example, but the point is that real-time money flow has nothing to do with the actual 'health' of a company.

Re: US SEC preparing to scrap quarterly reporting requirement

#202

Post by colechristensen »

logicallee wrote: post #164
clickety_clack wrote: post #161

Earlier quoted context omitted.

Maybe even just a single auction in the afternoon.

one per week should do it.

I'd settle for once per second. There's a lot of very fast trading nonsense which I've only heard defended with the "liquidity" bogeyman.

A sealed-bid uniform-price batch auction seems like the right action.

Re: US SEC preparing to scrap quarterly reporting requirement

#205

Post by gzread »

sashank_1509 wrote: post #114
gzread wrote: post #33

Earlier quoted context omitted.

Have you tried reaching out privately to those companies you want to invest in? Stock trading doesn't only happen on stock markets, and the rationale for publicly traded companies being so regulated is because they're so easy to invest in.

That’s much harder. If it’s a big private company like OpenAI, you need a minimum 50k investment. For smaller companies, the number is much higher I assume.

Yes.

Can you really invest only 50k into OpenAI? That seems low to me.

However, some small companies are okay with small investments. You have to negotiate privately, that's just how it is. If it was a simple, uniform process, they'd be on the stock market.

Re: US SEC preparing to scrap quarterly reporting requirement

#206

Post by idiotsecant »

nightski wrote: post #191
wholinator2 wrote: post #181

Earlier quoted context omitted.

Honestly what would happen if the stock market didn't exist. It seems like these days the price of stock is so disconnected from lived reality that genuinely confused if it would be all that catastrophic

Well we’d go back to an era where private capital owns the world. The public would not be able to participate or benefit from the ownership of companies and share in the prosperity.

Yes, hard to imagine this crazy timeline where private capital rules the world. Totally inconceivable.

Re: US SEC preparing to scrap quarterly reporting requirement

#207

Post by Dylan16807 »

plussed_reader wrote: post #176
jandrewrogers wrote: post #165

Earlier quoted context omitted.

The beauty of it, though, is that it would recover almost immediately as systems arbitrage an obviously stupid situation.

But on what time scale? Before a few connected entities make a profit or after?

The time scale is at least a thousand times faster than necessary for your retirement savings to be safe.

The problem of investment companies selling stupidly at 3am solves itself as they either learn or go bankrupt. And the counterparties making money off those dumb moves don't need to be 'connected'.

Re: US SEC preparing to scrap quarterly reporting requirement

#209

Post by gotwaz »

mcoliver wrote: post #120

Simultaneously they are opening up 0DTE options on certain stocks starting with large market caps but don't be surprised when this expands. Currently this was limited to large etfs like SPX. They are also extending trading hours towards 24/7 and eventually 365. How they square increasing liquidity with delaying information is insane. I know there is a lot of manipulation to make quarterly numbers and the tax code is…

Homework - What does Shannon Information Theory say about too much info beyond channel capacity?

Re: US SEC preparing to scrap quarterly reporting requirement

#210

Post by 20after4 »

elAhmo wrote: post #187

It seems like people in power in the US are competing to make as much damage as possible to systems that brought them so much wealth.

It's almost as if they aren't considering the best interests of the public or the government/economy that they are dismantling.
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