"The U.S. public markets are world-class. They force companies to operate in the open and make them easier and cheaper for everyday Americans to invest in. The disclosure rules and continuous oversight mean investors get timely, comparable information."
"Every quarter, public companies devote enormous resources to preparing 10-Qs, auditor reviews, Sarbanes-Oxley certification procedures, SEC filings, and earnings calls. For many companies, an annual audit and annual SOX compliance process should provide sufficient investor protection."
"The number of publicly traded U.S. companies has fallen from more than 7,000 in 1998 to roughly 4,000 today. Companies are staying private longer, and at times reaching the scale of public firms without ever listing."
The SEC is contemplating a significant shift in public company disclosure by moving from quarterly to semiannual reporting. Morningstar has operated without quarterly earnings calls for over 20 years, demonstrating the feasibility of this change. Current quarterly reporting demands substantial resources from companies, particularly smaller ones, which may deter them from going public. The decline in publicly traded companies highlights the need for reforms that could make public markets more attractive and accessible for emerging firms.
Read at Fortune
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