Oct. 16, 2018
While I admire the SEC's efforts to clean up some of the darker corners of the investing market, I think the proposed efforts are going about it backwards. Often a company does not want to be public, yet it still has an obligation to its shareholders. Companies like that often request an NDA (non-disclosure agreement) before releasing financials to shareholders (I can send you such requests I have been sent). These companies are hiding from investors so that they can over pay themselves at shareholders expense. Your proposal would further embolden those companies that already wish they were private. A better solution, the SEC should provide a costless way for shareholders to request financials, 220 demands, and all things they have the right to receive that companies sometimes refuse. This would unburden shareholders of incurring legal fees to get what they are legally entitled to do. If you want financials to be sent, and I agree that is a great idea, a better way would be to disallow board members, and executives to receive compensation if basic shareholder demands aren't met. Please punish the correct people, the cost should be borne by those hoarding information. Not allowing trading punishes the holders of such securities, not those that are in the wrong. Thanks Tim