r/WallStreetBets really hates the SEC’s proposal to weaken quarterly reporting

The Securities and Exchange Commission officially proposed last week to weaken the quarterly reporting standards for publicly traded companies. So far, public comments submitted to the financial regulator about the idea are overwhelmingly negative. But the best objection was filed yesterday by the popular subreddit, WallStreetBets. The community of “approximately 18 million retail investors on Reddit” argued in the unsigned letter that quarterly financial filings — known as 10-Q filings — are “the single most important leveling mechanism between retail and institutional investors in U.S. equity markets.” “Institutional investors have expert networks, channel checks, alternative data, satellite imagery of retailer parking lots, credit card panel data, and direct management access through conferences and one-on-one meetings that cost more than most of our portfolios. We have the 10-Q,” the letter reads. While the SEC isn’t doing away with 10-Qs, the regulator’s proposal suggests that companies will be able to elect every year whether they want to file an annual report and three quarterly reports (as is the case now) or simply one annual report and one semi-annual one. The rule change is particularly relevant as SpaceX — which is expected to allocate unprecedented IPO share to retail investors — along with a string of other buzzy and high-profile AI and tech startups begin queuing up for IPOs. …