The investor relationship has experienced growth actively in recent years. It is difficult to imagine that IR is not an essential function of large companies. When they have an international shareholders’ basis, it provides substantial support for the financing of the company and is thus directly involved in the value establishment.
IR mixes communication, finance and marketing to effectively manage information flow. This flow is managed between a public company, its shareholders and its investors.
It does not make us forget that investors are a very important part of all growth and business development. Because of this truth, it is of the greatest importance for companies Strong and transparent relations with them. This is where the Department of Relations with Investors comes into play.
In this article, you will get help regarding understanding of investors in a better and wider sense. We have divided it into many specific and manageable segments for your clarity. Let’s jump to the right without further delay.
Find out what objectives of investor relations are towards a company?
-
To allow the company to carry out the course of the ideal action which demonstrates the main value of the company.
-
Symbolize the company to investors and represent investors to the company
-
Offer financial details to investors (retail and institutional trade) in a practical and precise manner
-
Offer non -financial data to help business assessments
-
Analysis of scholarship regulations and securities commissions
-
Promotion of harmless sales or “closure”.
-
Submit an investor response to business administration and the board of directors
-
Building reactive capital markets for future funding in advantageous terms
Functions performed by investor relations
-
Accomplish the obligation to the power to offer information
As an information provider, Relations with investors is fully understood as meeting regulatory needs. Communication linked to finance is reactive and adapted in the direction of most minor requirements.
Along the line of a communication function, the IR manager is considered, in particular as the company’s ambassador to the capital market. This is different from the type of IR performed by the financing function.
Some say that IR is an extension of corporate communication. Some of them say they really concern accounting or strategy.
What we think is that for an external effect, it is very necessary to have a single vocal policy, and this must be treated from a main point of the company.
The role of IR as a marketing function is to market actions. The objective is to improve the course of action and create a positive image of the company. But there is a dissimularity between the sale of actions stories and the use of Marketing techniques by contacting investors.
Here, IR is presumed as wearing our assistance service in the company for the financial function. The important role of IR managers is to offer information and elucidate the figures.
Within a company, an independent functional service is an IR that coincides with financial and communication functions. Not only, but with corporate governance, mergers and acquisitions, strategy and business development.
It is even an educational function. It introduces operational commercial departments to what extent the capital markets operate. And as the owner of the company, what are the requirements of shareholders.
As a central point for many external and internal shareholders, the IR transmits essential support for the financing of the company. And is therefore directly involved in the development of the value.
Ministerial and personal development possibilities
It is a fact that various roles of the IR are obviously not described. They correspond both the historical perspectives and today on the characteristics of the IR.
In this context, it is difficult to talk about the profession of investors’ relations. However, we know that IR is very well developed in listed companies of a specific orientation and size of the capital market. No matter their guy.
We can tell you that other relationships with investors are incorporated into tactical decisions.
And even in the broader board of directors. They generally have a link with services such as corporate governance, mergers and acquisitions or business development. And has direct access to the CEO, powerful status becomes within the company and therefore on the capital market.
Over time, the professionalization and the standard of each company improve. Thus, investor relations agents can build their field of responsibility and assume a strategic role.
With the information from the different parties that IR plays in companies, IROS can be appropriately placed within the company. They can recognize the growth possibilities both for the work itself and for their own individual career.
Now that we know the importance of the IR and the functions they fulfill, we have even understood the objective of the IR. So it’s time to learn the advantages of an IR team.
Advantages of a good team of investors relations
Strengthens credibility
Obtaining an IR team in your business will develop credibility. The reason is that they help share the necessary information on the operations of the company. And the data is transferred to those who can help raise the business.
The sharing of correct and timely information will create confidence between many shareholders and other companies. Investors will be happy and always ready to deal with your business.
Increased loyalty
If you get an excellent IR team for your business, you will surely have a very faithful shareholder base.
The sharing of correct information on operations will guide shareholders. This will even help make decisions about the purchase share process. This activity will strengthen trust and improve faith.
In case you do not have an IR team, we recommend that you get one and take advantage of all the advantages.
Final reflections
Relations with investors have so many advantages, roles and needs.
Thus, it becomes essential to pass the word to obtain a responsible and reliable IR team for your business.
Make sure to browse the points shared above so that it becomes easy for you to build an structure concerning the involvement of an IR team, thinking of all the details.
It is easy to find one, because most large companies now have an IR team that helps them on the capital market.
Thank you for reading, let me know your thoughts and comments below.
Top 10 popular messages of all time
- Top 30 Canadian Blue Chip stocks you should own
- How to use a Canada service account
- How to watch free TV shows in Canada – List of the 10 best sites
- Vgro Review – Portfolio ETF of the best growth in Vanguard
- Top 7 Canadian FNB that you should have
- TOP 150+ Dividend actions in Canada – Full list
- Credit Karma Canada Review – Free credit score and report
- CPP payment dates – How many RPCs will you get?
- Top 5 High interest savings accounts in Canada
- How to open an arc my account?
