The U.S. enacted quarterly reporting in.
He said he has asked the US Securities and Exchange Commission to investigate making such a change.
But executives and other investors said Trump's argument made sense because it would cut costs of compiling and filing results and remove short-term distractions for those running companies. PepsiCo was not immediately available to comment. He also said he would find it challenging not to get information every quarter because so much can change in six months.
Ultimately, the SEC would need the majority of its sitting commissioners (there are now four) to vote for the final changes.
While capital market rules are not traditionally a partisan issue, a major rule change would likely meet opposition from the agency's two Democratic-leaning commissioners, Robert Jackson and Kara Stein, who generally advocate for strong corporate governance.More news: Amazon’s next big thing could be a TiVo knockoff
SEC spokesmen didn't respond to requests for comment.
In a statement, SEC Chairman Jay Clayton said that Trump had highlighted "a key consideration for American companies" and that the agency is already reviewing public disclosure requirements, including their "frequency".
"It's cockamamie idea. For starters, what's the difference between six and three months?". "So we're looking at that very, very seriously".
Under Trump appointee chairman Jay Clayton, the SEC has taken steps to relax rules for issuers, including allowing firms going public to file information confidentially, and is now discussing relaxing some other compliance rules. That act also created the SEC, which sets the regulations which govern those quarterly reports. He picked a good moment to put the idea forward: Elon Musk is in the midst of a dramatic push to take Tesla Inc private in large part, he says, to remove the pressures of having to report quarterly earnings.
Doing away with quarterly reports would help corporations save money.
The SEC requires listed United States companies to issue quarterly and annual financial reports to keep investors informed about their financial position. Trump said in a Twitter post. Still, Clayton hasn't floated reducing the number of times that companies must disclose their financial performance each year.
No. While the Securities Exchange Act of 1934 requires companies to report periodically, the SEC has the discretion to draw up or change the specific rules on how frequently this happens.