If companies stop reporting quarterly, then all of the bad news is going to come all at once at the end of the of most companies fiscal year in the fall.
Also, it isn’t as though they won’t have internal reports. And given the deplorable state of the SEC, I have to assume this would lead to some wild insider trading in between annual releases.
If people had insider knowledge, well that’s a yearly wealth transfer from your 401k to the 1%.
It’s arguably worse than that. People passing around unregulated reports under the table can still lie to one another with abandon. So the black market for inside info is ripe for fraud and scams which can’t even be prosecuted normally, because its not information anyone has to report out to a public commission.
If I want to come in and release the “Double Super Secret Real Microsoft Numbers” and spread it around, I can effectively manipulate the price of the stock based on how many people I can dupe into believing my phony figures.
Also, it isn’t as though they won’t have internal reports. And given the deplorable state of the SEC, I have to assume this would lead to some wild insider trading in between annual releases.
It’s arguably worse than that. People passing around unregulated reports under the table can still lie to one another with abandon. So the black market for inside info is ripe for fraud and scams which can’t even be prosecuted normally, because its not information anyone has to report out to a public commission.
If I want to come in and release the “Double Super Secret Real Microsoft Numbers” and spread it around, I can effectively manipulate the price of the stock based on how many people I can dupe into believing my phony figures.