Importance of Investor Relations

Importance of Investor Relations


A company should try and know its investors, of course knowing each and every investor personally is quite a difficult and daunting task, but knowing their motives for investing is important.

The importance of investor relations stems from the fact that it can generate recognition and credibility for the company in the market, making it more attractive in the eyes of the investors and thus bringing in more capital. When a company develops a healthy relationship with the investor community it creates for itself increased access to capital.
Another attractive outcome of investor relations that companies aim for is liquidity. Through management of investor relations, the company continually updates the public on the profile of the company and in doing so, creates awareness.

The purpose of investor relations is not only to inform the investors about the happenings of the company but it is also used to help the company itself.

When companies show their knowledge of how their respective markets work and how they can benefit from the markets, the investors gain confidence in the company.
MinaMarGroup.com
MinaMarGroup.mmg@gmail.com

Comments

Post a Comment

Popular posts from this blog

All you wanted to know about Corporate Finance

Image
All you wanted to know about Corporate Finance What is Corporate Finance? ·         Business involves decisions which have financial consequences and any decision that involves the use of money is said to be a corporate finance decision. ·         Corporate finance is one of the most important part of the finance domain as whether the organization is big or small they raise and deploy capital in order to survive and grow. ·         There are various roles that corporate finance plays, which are very interesting and challenging, one of the main roles is that of being a Finance adviser. ·         This can comprise helping to manage investments or even suggesting a mergers and acquisitions strategy. Corporate Finance Principles ·         Investment Principle: This principle revolves around the simple concept that businesses have resources which need to be allocated in the most efficient way. ·         Financing Principle: The job here for the corpora
Read more

How to find Angel Investors

Image
How to find Angel Investors Public Angel Investors  ·        The advantage of “public” angel investor is that they are easy to find. The disadvantage is that because they are easy to find, they are constantly being approached with investment opportunities and can only fund a tiny portion of those that they see.   ·        Public angel investors are angel investment groups or individual angel investors that you can find online and/or specify themselves as angel investors.   ·        The other type of “public” angel is someone who publicly identifies themselves as an angel investor. By going to a site like LinkedIn and searching the keyword “angel investor”, you can probably find such individuals. Private Angel Investors  ·        Private angel investors are people who have either made just one or a small amount of angel investments or who have the financial ability to make an angel investment, but has.   ·        Most “private” angel investors have the mea
Read more

Why companies split stock?

Image
Why companies split stock?  Stock split or forward stock split is a corporate action where board of directors decides to issue more shares by dividing existing outstanding shares into multiple shares defined by the predetermined ratio. Most common ratios are 2 for 1 or 3 for one where investors for every share they own get two or three shares respectively. Likewise, price will be divided accordingly. If for example you originally owned 100 shares, each worth $15 in 2 for 2 split you will receive 200 shares each worth $7.5 and in situation where 3 for 1 split is done it will be 300 shares with $5 price per share. As you can see no real value is added and market capitalization is the same just like with reverse stock split. Companies do this for various reasons. Some stock price can reach astonishing level and company's official might want to lower the price to make it more appealing to small retail investors. Some argue that there is a psychological effect which
Read more