Investor Relations

By :- Mithilesh Trivedi

What is 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.

Why commit to Investor Relations?Fundamentally, the remit of investor relations is not only

to create an awareness and understanding of your company amongst the investment community

it is also to help quoted companies gain :- access to capital achieve liquidity fair valuation for their

sharesGetting balance right

Investor Relations

Institutional InvestorsLong-term, concentrated support

Managing pooled assets

Hedge funds, long only investors and sovereign wealth funds

Benchmarked performance

Focus on key investors

Private Investors Private investors are members of the public who buy shares in

quoted companies

They may buy shares directly, without taking professional advice, via an execution-only stockbroker or internet-based share dealing system; or

They may pay for advice from a private client stockbroker and buy shares on the latter’s recommendation, or,

Alternatively, leave their stockbroker to structure their investments

according to their particular needs and make some or all investment decisions on their behalf under a so-called advisory or discretionary client agreement

The role analysts play in forecasting a company’s performance is vital in setting market expectations about its likely profitability and future growth

Analysts therefore play a pivotal role in the relationship between a company and its investors

Analysts strive to have as deep an understanding of a company, its key drivers and macro influences as possible, which requires regular access to the company’s management and ongoing direct communication

Analysts

This means that for all businesses, and quoted companies in particular - which have a duty to engage with their shareholders – effective communication with the financial press is more important than ever, whether :-

Traditional print (newspaper and magazine)

JournalistsBroadcast press Radio and television Internet based new media

Media

Example of Investor Relations

They are the Maker

They are the Visitor

They are the FactorThey are the Motivator They are the Tracker They make everything

Matter

Finally……….. If a company has good Investor Than they can rock any Sector