What are investor relations?
Investor relations is the communication of information and insight between a company and the investment community. This information should allow investors to understand the company's strategy and prospects to help them make an informed decision about whether or not to invest and how much the company is really worth.
Where have you heard about investor relations?
If you own shares in a company you will often receive reports and mailings to let you know what is happening in the company. If you buy and sell shares regularly you might see research or buy, sell or hold reports from brokers advising on whether to buy and sell and these may have been influenced by a visit to or a call with the company and how it has affected their opinion.
What you need to know about investor relations...
Investor relations is usually run out of a department in a medium-sized or large company set up to communicate with shareholders and the wider financial market about the company's performance. What they communicate is usually a mix of regulatory and optional information.
Communication is usually aimed at existing shareholders, potential investors, analysts and brokers, together with journalists. The communication can take the form of anything from a press release, a company website, the annual report or AGM. Meetings with analysts and investors can also be part of the wider process.
It is usually seen as a long term nurturing relationship, particularly with investors, to encourage long-term trusting relationships. The ease with which companies can raise capital is sometimes used as a measure of how good their investor relations are.