To further understand the purpose of Investor Relations.
To discuss the significance of having Investor Relations.
WHAT IS INVESTOR RELATIONS?
It is a specialized practice within the PR industry representing corporations to investors, regulators and the media.
A process which the corporation communicates with its investors.
It is an activity to which a company discloses information required for investment judgment timely to the bond and
or to shareholders.
A department within a public company that distributes information about the company and its financial performance to
existing and potential shareholders.
PRINCIPLES OF INVESTING
There are seven (7) fundamental principles of investing that every investor should know. Topics include:
- Knowing your current situation.
- Goals and risk tolerance.
- Getting your finances in order.
- Thinking long term.
- Focusing on Stocks.
- Researching and monitoring your investments.
- Knowing when and how to get financial
NATIONAL INVESTOR RELATIONS INSTITUTE (NIRI)
NIRI is a professional association of corporate officers and IR consultants
responsible for communication among corporate management, the investing public and the financial community. NIRI has over
4,500 members in 36 chapters around the United States. NIRI sets the highest standards in education designed to advance the
practice of Investor relations and meeting the growing professional development needs of those engaged in the field.
INVESTOR RELATIONS… FURTHER DISCUSSED
To practice investor relations, a communicator needs thorough knowledge
of the global investment community. These should include important intermediaries between individual or institutional investors
and companies such as financial analysts, stockbrokers or registered representatives and reporters or editors from influential
At the same time, the communicator needs to know the messages a company
must deliver to those critical audiences to inform and persuade. These messages should be designed with the organization strategic
direction in mind. Therefore, investor relations practitioners tend to become involved with discussions relating to where
the company is heading and how it plans to get there. Only then can the practitioner have the information to respond accurately
to questions and, more importantly, develop communications plans to address the reasons why the investors would want to own
stock or bonds of the company.
Fundamentally, what the investor wants is an understanding of the strategic
direction of the firm and what competitive advantages will allow it to be improved returns for the shareholder. The investor
relations professionals know intimately the issues and concerns of the investor.
Once you have developed an approved plan with specific goals, you will
need to use multiple tactics:
Fact Books or Fact Sheets
Presentation before financial audiences
Press Release and Reprints of News Articles
Letters or Bulletins
and a variety of telecommunication devices from the internet to the old fashioned telephone