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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

#261

Post by SilverElfin »

mmooss wrote: post #186
SilverElfin wrote: post #171

Earlier quoted context omitted.

This is a manipulation enabler. I’m surprised no one is mentioning this, but it’ll allow companies like SpaceX and Tesla to avoid scrutiny. The other changes the SEC and NASDAQ are rushing all have donors behind them. That’s how this openly corrupt administration works but it’s also how America has generally operated in the past, only to a smaller degree.

> it’s also how America has generally operated in the past It's not. That's why we have the rules that they are recinding, and why the US has long had among the the most transparent, safest, and liquid markets in the world. Saying that 'it's always been this way' is a really concerted effort to bury one's head in the sand.

I was talking about the broader way things work, not necessarily for the SEC specifically - although they’re also subject to this phenomenon. Lobbying in America, and the revolving door between industry and government agencies, is a core part of American politics and economics. Long before the Trump administration.

Re: US SEC preparing to scrap quarterly reporting requirement

#262

Post by carabiner »

fourseventy wrote: post #162
alexpotato wrote: post #69

One of my favorite stories about logistics and quarterly earnings deadlines (from when I worked at a pharmaceutical company: "In our business, a truckload of various drugs can easily reach $10-$15 million. Now, if that truck arrives at the depot at 11:59pm March 31st then it's first quarter earnings. If it arrives at 12:01am April 1st then it's second quarter earnings. $15 million is a BIG shortfall, even for us, so…

That doesn't make any sense because the revenue is already booked for the sale which has nothing to do with when the delivery truck actually arrives.

Ya but op's anecdote is cute and funny.

Re: US SEC preparing to scrap quarterly reporting requirement

#264

Post by bmitc »

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.

Private capital doesn't own the U.S.?

Re: US SEC preparing to scrap quarterly reporting requirement

#265

Post by gotwaz »

mcoliver wrote: post #221
gotwaz wrote: post #209

Earlier quoted context omitted.

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

Sure but I should add I'm not saying this should be done in place of current reporting. It should be done in addition to. I'm advocating for more transparency augmented with periodic storytelling. Over time that noise becomes the pulse of the company. Wrt Shannon, the channel capacity today vastly exceeds that of 1934 when quarterly reporting became standard. Give me more data and a filter any day over a once every 6…

How do we discuss Shannon if you dont tell us what your channel capacity is and how you compute it?

Re: US SEC preparing to scrap quarterly reporting requirement

#266

Post by bmitc »

bluecalm wrote: post #227
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

It's not disconnected from reality. You just don't understand it. If the stock market didn't exist you would have less opportunities to invest in well priced companies and people would be manipulated in investing in opaque, often ridden with accounting shenanigans things like private equity. The more companies are public and subject to price discovery done by sophisticated players the better it is for uninformed play…

> people would be manipulated in investing in opaque, often ridden with accounting shenanigans things

This happens even with the stock market. See every financial crisis.

Re: US SEC preparing to scrap quarterly reporting requirement

#267

Post by mlyle »

gzread wrote: post #214
clickety_clack wrote: post #161

Earlier quoted context omitted.

Maybe even just a single auction in the afternoon.

I saw this as a serious proposal somewhere but I can't remember where. There are exchanges out there that run continuously but with delayed information feeds.

Run continuously, non-delayed, but only sweep the order book at a random time every [1,2) seconds. Run for something like our current extended market hours.

Everyone gets the benefit of fast-enough execution and strong liquidity.

Crazy high-frequency gamesmanship goes away. Smart quantitative plays are still possible.

Re: US SEC preparing to scrap quarterly reporting requirement

#268

Post by jongjong »

fc417fc802 wrote: post #228
ang_cire wrote: post #201

Earlier quoted context omitted.

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,…

I'm fairly certain you're describing fraud.

I'm fairly certain he's describing the economy.

There are so many companies like this which are just moving money around rapidly in and out with little to no actual profit. Finance sector is easily gamed.

For example, anyone can become a billionaire; just start a company, issue 1 billion shares at slightly above $1 each, keep most of them for yourself; release just 10K shares to the market and then let traders trade those same shares back and forth among themselves at high frequency... With just over $10k each, they can keep moving 10k shares back and forth 10k times per day... They call it "High frequency trading."

There you have it; now you have a billion dollar company with a healthy trade volume of $100 million per day... Your stock is in-demand! And you just needed to find two traders with just $10k in the bank and a trading platform with low fees... Becoming a billionaire is not that difficult.

You can apply the same principle to revenue... Just increase the velocity of money in and out of your company and you can hit any financial target you want.

Doesn't mean it's a solid scheme but everyone likes the numbers they're seeing. Nobody is paying attention to actual buying power.

Re: US SEC preparing to scrap quarterly reporting requirement

#269

Post by terminalshort »

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?

Makes no difference unless you are a daytrader
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