Investor Relations combines finance, communication, and marketing to effectively control the flow of information between a public company, its investors and its stakeholders.
It’s of the utmost importance for companies to maintain strong, transparent relationships with investors. Because of this in companies Investor Relations department comes into play.
Some of the main goals of investor relations are:
- Enabling the company to achieve the optimum share price of the company that reflects fundamental value
- Representing Company to investors and vice versa
- In a timely and accurate way to provide financial information to investors
- Building receptive capital markets for future financing at favorable terms
Benefits of Investor Relations Team
- Maintaining loyal shareholder base
- Enhancing long-term shareholder value
- Ensuring receptive capital markets for future financing
- Lowering the cost of capital
- Building long-term credibility with the investment community
Because IR fulfills so many duties and functions in so many capacities, it’s essential that the department stay fully integrated with nearly every other department in the company, such as the legal and accounting departments, as well as with the entire executive management team.