Investor Relationship
Investor Relations (IR) combines finance, communication, and marketing to effectively control the flow of information between a public company, its investors, and its stakeholders.
Investors play a major and vital role in the success and growth of a company. Because of that fact, it’s of the utmost importance for companies to maintain strong, transparent relationships with investors. This is where the investor relations department of a company comes into play.
This article is designed to help you better understand investor relations in the broad sense, as well as to break it down into more manageable and specific segments. Without further adieu, let’s dive right in.
What are the Goals of Investor Relations?
The main goals of investor relations professionals are:
- To enable the company to achieve the optimum share price that reflects the fundamental valueValuation InfographicOver the years we've spent a lot of time thinking about and working on business valuation across a broad range of transactions. This valuation infographic 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
- Non-aggressive sales promotion or “closing”
- Presenting investor feedback to company management and the board
- Building receptive capital markets for future financing at favorable terms