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)
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