Posted by: Female Perspective | October 9, 2010

Chapter 8: Investor Relations

Chapter 8: Investor Relations

Investor Relations are often the most regulated operation in a coporation.  The reason being because IR deals with real people and real money.  If people are taking the chance on your company, then you want to do your best to make sure that they stay well informed and are taken care of.  Also, those in IR are subject to serious civil and criminal consequences if they violate certain principles. 

There are three goals/roles of investor relations:
1. Ensure that a company’s securities, that is, its stocks and bonds, are fairly and fully valued in the marketplace.  This essential means that price of securities is close to the present and potential value of the company
2. Help fulfill corporations’ affirmative disclosure obligations under securities law and government regulation. 
3. Create competitive advantage.  To do this IR often uses the same communication tools that public relations does in the common market; media relations, internal communications, and sometimes advertising. 

Shareholders have two main rights within a corportation.  First, “the right to select individuals to represent their interests who in turn direct the CEO and other senior managers what to do”; and second, ” and the right to have access to a steady, accurate stream of information about the company and its actions.”

**all this information came from the book, Reputation Management by John Doorley

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