Role of Investor Relations

Role of Investor Relations

Investor Relations combines finance, communication and marketing to effectively control the flow of information between a public company, its investors and its stakeholders.

The main goals of an investor relations professionals are:

• To enable the company to achieve the optimum share price that reflects the fundamental value of the company
• Representing the company to investors and representing investors to the company
• Providing financial information to investors (retail and institutional) in a timely and accurate way
• Providing nonfinancial data to support company valuations
• Observing the rules of securities commissions and stock exchanges
• Not aggressive sales promotion or “closing”
• Presenting investor feedback to company management and board
• Building receptive capital markets for future financing at favorable terms

Some of IR’s other functions include:

• Coordination of meetings
• Conferences for shareholders and the press
• Releasing financial information
• Taking point on financial briefings
• Filing and publishing report with the Securities and Exchange Commission (SEC), or other relevant commission (depending on where the company is listed)