We know what you’re thinking. Amidst all of the dislocations and confusions and fear and fraud, as the coronavirused ranks grow above half a million globally and spread to the inner sanctum of No. 10 Downing Street (actually, No. 11, but whatever), and with a market that has no idea what to do with itself, what we all need right now is a little bit more uncertainty. Well, good news! Jay Clayton & co. are providing exactly that.
The Securities and Exchange Commission has given companies an additional 45 days to file the periodic reports that investors depend on to learn about financial performance and developing risks….
The situation isn’t ideal for investors. Delays in financial reporting deprive them of the information they need to assess future performance, promoting higher capital costs, lower stock prices and more volatility.
“A delay always raises a question: What are they not telling us, and why?” said Paul Miller, a professor emeritus of accounting at the University of Colorado at Colorado Springs. “The market’s aggregate will respond with uncertainty by depressing share prices.”