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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

#331

Post by fatata123 »

fc417fc802 wrote: post #319
ang_cire wrote: post #288

Earlier quoted context omitted.

It's not actually fraud if there is some ostensible service they're performing. Business units within businesses 'pay' each other for 'services' all the time. Ditto for subsidiaries. Whether something is fraud might come down to intent alone. The line between legal and illegal business transactions can be murky as hell.

For it to not be fraud you'd have to actually exchange services proportional to the line items. That isn't what was described. Falsifying line items to juice your numbers is fraud plain and simple.

[dead]

Re: US SEC preparing to scrap quarterly reporting requirement

#332

Post by ethbr1 »

bizzletk wrote: post #158
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…

Can you enumerate some examples of when it having less information is better than having more?

From a company perspective, compiling a quarterly report is a non-trivial amount of effort.

The company is employing additional resources (accountants) and distracting leadership (prepping talking points).

I'm not firmly in one camp or the other, but it is a substantial amount of effort to release on whatever cadence the SEC mandates.

Re: US SEC preparing to scrap quarterly reporting requirement

#333

Post by tormeh »

Isn't the solution to a rare task being painful to make the task frequent? What if we required daily/weekly fiscal reporting? Would that even be feasible? I guess it would force complete automation, which might make it much more difficult to change things and reduce company agility. Would be fun to hear the opinion of someone actually involved with the process.

Re: US SEC preparing to scrap quarterly reporting requirement

#334

Post by OhioMan2943 »

GolfPopper wrote: post #314
OhioMan2943 wrote: post #297

Earlier quoted context omitted.

What something?

Look at the factors in play: -8 billion human beings -the continuing health impacts of COVID -increased frequency and magnitude of destructive weather events -global weather pattern shifts -increasingly dysfunctional governments in previously stable nations -markets dominated by players decoupled from reality -a stock market bubble of immense proportions -the end of the post-WWII order -an interlinked global economy…

My main concern isn't how or if we survive, but who we survive as- the rewriting of what the context of being human is the biggest threat to me- imagine social media but spreading increasingly depressive and depraved social attitudes. We need social buffer- and contentment and contextualising media to see us through this, alongside everything else.

(A luxury i know as it shows i have a comfortable and stable existence)

Re: US SEC preparing to scrap quarterly reporting requirement

#336

Post by potatototoo99 »

kolinko wrote: post #311
freetanga wrote: post #307

Earlier quoted context omitted.

Delisting and going private is always an option if you want to go at your own pace and talk to your investors 1:1.

They would not be allowed to do so - too many shareholders. That’s why e.g. SpaceX will be going public even though Elon Musk would want to keep it private

Musk absolutely does not want SpaceX to stay private

Re: US SEC preparing to scrap quarterly reporting requirement

#337

Post by cucumber3732842 »

arduanika wrote: post #251
doom2 wrote: post #196

Earlier quoted context omitted.

> The theory is that if we close the gap in regulatory burden between public companies and large private companies, then maybe we'll see more IPOs like back in the 90's, before Sarbanes-Oxley and other new laws. And maybe more Enrons?

Yes, maybe. The optimal number of scandals is sadly not zero, and any given piece of legislation tends to overreact, fighting the last battle without seeing all the potential second-order consequences. Even the most carefully-crafted laws are worth giving another look, periodically. Note that FTX, for example, was privately held. If it had been born in the nineties, the norm would be for it to go public, and have at…

> fighting the last battle without seeing all the potential second-order consequences. Even the most carefully-crafted laws are worth giving another look, periodically.

Dare I say the special interests that ghost write the bulk of the text of any given legislation are specifically banking on those second and Nth order consequences.

Re: US SEC preparing to scrap quarterly reporting requirement

#338

Post by baq »

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.

it's only fraud if somebody finds out

Re: US SEC preparing to scrap quarterly reporting requirement

#339

Post by cucumber3732842 »

mtsr wrote: post #287
pembrook wrote: post #285

Earlier quoted context omitted.

Milliseconds? Any overnight mispricing is going to become an arbitrage opportunity for market makers, hedge funds, and HFT firms...whom will then compete with each other to mine that arbitrage opportunity until profits go to zero, solving the market inefficiency and mispricing problem over time (and by over time, I mean like probably the first few nights and then it stops being an issue forever). In other words, a li…

Extracting value from the market as they do it and leaving everyone operating at normal time/capital scales with less. Or isn’t that what you meant?

That's one way to think of it.

The other way to think of it is that these parties are essentially middle men who make a cut of the difference whenever someone buys/sells far from market price.

Basically if you mis price something they screw you rather than the counter party who would be interested in taking the other side at market.

I think this is stupid and does not add value, but I don't think it's harmful. It's like the stocks equivalent of a junk flipper.

Re: US SEC preparing to scrap quarterly reporting requirement

#340

Post by cucumber3732842 »

dlenski wrote: post #300
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.

I'm extremely skeptical about this. 24/7 trading will definitely burn a lot of extra energy in datacenters, make some speculators a little richer, and make a LOT of retail investors nervous… But what actual real-world problem will it solve ? I for one am skeptical that more liquidity is always good. I think that having achieved $0.01 spreads, we're well-past the point of diminishing returns with high-frequency tradin…

>But what actual real-world problem will it solve?

Having US markets open during the rest of the world's business day.

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