When it comes to publicly traded businesses, individuals tend to overly focus on the roles carried out by those in high-authority positions like the CEO or CFO. For instance, most individuals would know that Elon Musk is the CEO of Tesla. A very small percentage of these, however, would have the ability to name a single investor relations expert who may be operating at Tesla. This is a trend that came as a consequence of the media into life dedicating most of their attention to individuals who lead companies. It doesn’t mean that everyone else in the company’s jobs ought to be neglected. For instance, the aforementioned role of investor relations professionals can be the reason. Thus, what exactly do do on an everyday basis? Moksh Popli, a business consulting specialist, answers this question below.
Help Build Investor Confidence
Obviously, the important job obligation here revolves around establishing a rapport with prospective and existing investors. They are the ones who let them go through the process of purchasing shares and attract prospective stockholders. So as to do so, however, they must convince individuals to devote their capital to the corporation. After all, individuals will rarely give their money away to businesses that show no signs of success. Fortunately, investor relations specialists are there to help prospective buyers get knowledgeable about the industry, understand where the company is going, see how stock prices have behaved in the past, and much more. To put it differently, they do everything that’s needed to incentivize a person enough to become involved with the venture.
Keep Constant Track of the Market Trends
According to the founder of Moksh Popli Consulting, Moksh Popli, investor relations include an important duty to continuously scan the market for upcoming changes. For those unfamiliar, this means that they spend hours going over the recent trends in their industries where the firm might need to make changes so as to predict. Consequently, if the market appears to be exhibiting a downturn, investor relations expert will advise the CFO about the proper course of action. More importantly, they will communicate the planned course of action in order to increase transparency and ensure a profitable relationship.
Take Charge of Annual Financial Documents (10-Ks)
As most investors know, companies which are publicly traded must issue an annual report so as to stay compliant with the Securities and Exchange Commissions’ laws. This is referred to as the 10-K where all financial documents are released to the general public. Why are these important? Well, absent appropriate data, investors wouldn’t have the ability to make decisions about investing in the company. A common misconception is that attorneys handle these jobs since they are. They are just one of the links in the chain that holds the operation. Annual reports also need input from those who may be working in low-level tasks all of the way to the true CEO who must write a letter addressing the shareholders. And who ensures that the report is flowing smoothly and meets the criteria of the market? Those who manage investors relations! After all, they are.
Bridge the Gap Between Investors and Management
Even though it was mentioned, it is important to understand how long investor relations professionals spend ensuring the investors and management are operating coherently. The reason comes from the fact that these two parties may not always have the same goals in mind. For instance, investors are constantly focused on getting a high return on their investment. This occurs when the stock prices go up and they are able to cash in on their purchase. Management, on the other hand, is focused on maximizing companies’ revenues. Well revenues don’t always translate to higher stock prices. The two parties might not be chasing the same outcome. Luckily, mitigating these differences is one of the reasons.
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