Communication with your investor community.

 

 

Investor relations is the practice of communicating with your investors, shareholders and other relevant parties who are interested in the shares and financial health of your organisation. IR is also commonly referred to as financial communications or financial public relations however, essentially they are all one and the same.

The key responsibility of investor relations is to be the middleman between your business and your investment community. Through consistent communication, we can help you build trust and transparency between your organisation and your investment community. Investor relations is a long term responsibility and not just a function that can be attended to occasionally, which is why sourcing to an experienced investor relations team, like Equity Alliance, is so important.

 

Why commit to investor relations?

 

The London Stock Exchange says the following about investor relations:

“Investor relations is the term used to describe the ongoing activity of companies communicating with the investment community. While the communication that quoted companies undertake is a mix of regulatory and voluntary activities, investor relations is essentially the part of stock market life that sees companies interacting with existing shareholders, potential investors, analysts and journalists.”

Some of our responsibilities as your investor relations team include creating press releases, communication through various media, creating annual reports, setting up meetings with your investors, and maintaining the content on your web pages. All of these functions ensure that your stakeholders are well informed so that they remain informed about your financial performance, governance and prospects.

 

Communication with your investor community.


 

Investor relations often starts at IPO phase


Investor relations starts as early as the Initial Public Offering (IPO) phase, when the main purpose is to make the organisation appealing to potential investors.

After this phase, communication between your organisation and the new investment community needs to continue. In fact, it is in these early stages that communication is key.

According to the National Investor Relations Institute (NIRI):

“Investor relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.”

 

Many things may affect investor sentiment


Our role, at times, goes beyond simply communicating with investors. As investor relations professionals, we stay on top of all rumors and concerns in circulation, even those that are non-financial, because any negative sentiment may affect investor sentiment.

Video – Warren Buffet on investor relations

According to business magnate Warren Buffet, it is crucial that all members of the investor community receive every piece of data at the same time (and of the same quality), regardless of how large or small they may be.