Why Investor Relations are Important?

Capital Markets CIO Outlook | Friday, June 25, 2021

IR has risen quickly in recent years, and it is difficult to assume that it is no longer a significant function of large firms with a foreign shareholder base. It contributes significantly to a company's finance and is thus directly involved in value development.

Fremont, CA: Investor Relations (IR) mixes finance, communication, and marketing to effectively manage knowledge exchange between a public entity, its investors, and its stakeholders. This essay is meant to help you better appreciate the significance of investor relations in general and the CFO's function in this regard.

IR has risen quickly in recent years, and it is difficult to assume that it is no longer a significant function of large firms with a foreign shareholder base. It contributes significantly to a company's finance and is thus directly involved in value development.

Investors play a significant and critical role in the success and development of a firm. Almost every firm owes its investors a debt of gratitude for getting the business off the ground and continuing its operational success. As a result, keeping good and transparent relationships with investors is critical for businesses. The investor relations department of a company comes into play here.

IR is a strategic management obligation that must be met on a continuous basis, particularly for publicly traded organizations. It combines finance, communication, marketing, and securities law compliance to allow for successful two-way communication between a firm, its shareholders, and the financial community. The following are some of the standard features of Investor Relations (IR):

Key Goals of Investor Relations

The following are the primary goals serviced by the investor relations department/IT professionals:

• To ensure that the firm's share price represents the intrinsic value of the company.

• Representing the company to investors and investors to the company 

• Providing timely and accurate financial information to investors (both retail and institutional)

• Providing non-financial facts to support company values

• Providing non-financial facts to support company values 

• Non-aggressive sales marketing 

• Adherence to the norms and regulations of the securities commissions and stock exchanges with which the firm is registered

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