Information is the lifeblood of the stock market, but regulators want to let companies provide less of it. The government appears determined to press forward with its plan to let public companies opt out of quarterly financial reporting. Now companies and their boards must decide whether they want to and what it might cost them.

U.S. securities regulation is a disclosure-based system. Reducing the frequency of required financial reports strikes at the heart of its design. This explains the outcry over the SEC's proposal to make quarterly reporting voluntary and allow semiannual reporting instead. Many investors see it as an act of contempt for their interests.

Vociferous complaining won't help maximize returns, though. Investors must operate within the world they have, not the one they wish existed. Barring an unexpected pivot by the SEC, practical considerations are fast approaching for investors and companies alike. Corporate boards that switch to semiannual reporting risk branding themselves as laggards in the eyes of the market. Less transparency often translates into lower equity valuations and higher borrowing costs. Moreover, the SEC could easily reverse the policy after President Trump leaves office. So whatever benefits companies might see in changing practices could be short-lived.

The people who stand to benefit most from less timely reporting include pump-and-dump artists and quick-buck penny-stock promoters. Less disclosure makes it easier to separate easy marks from their money. But there might be a silver lining: Giving companies the choice of a longer reporting window could make it easier for investors to spot stocks they should avoid.