Availability: The Secret to Investor Relations?
Today’s competitive market demands that companies attend to the needs and wants of their investors. In the case of emerging companies this can be especially important. Unlike more developed corporations, newly listed pre-revenue companies do not have the financial information as easily available. It is in a company’s best interest to communicate with their shareholders and grant them easy access to vital information and corporate progression.
Microcap investors need access to relevant information. When pursuing new investment opportunities many investors free up funds by selling shares in their smaller holdings. Without immediate access to information, companies run the risk of losing otherwise retainable investments. Many investors do not only review press releases before investing, but they may also look on the web for more comprehensive information and feedback from other investors. For many investors, a track record of left voicemails and unreturned calls is an indicator that could very well drive them to consider alternative investment opportunities.
Many companies believe that with the widespread availability of the Internet, shareholders have sufficient information to make investment decisions. While this can be a correct assumption, many investors prefer direct contact, and a lack of communication can be undeniably detrimental to corporate success. Maintaining clear lines of communication can be the easiest way of attracting and retaining potential and existing shareholders. Something as simple as share price fluctuation can deter and bewilder investors if they are uninformed and uneducated on the company’s current financial position and operations. Many companies assign communication duties to existing management. While this seems to be an optimal solution, an obvious downside is its impracticality. It is the management and director’s duty increase profits and maximize success for their corporations respectively. That being said it is natural that they will not always be available and capable of getting back to investors in a timely manner. However, having a competent person, well versed in the company’s corporate dealings, and readily available during business hours, is a cornerstone of good corporate governance and a strategic courtesy to your investors.
- Clark Kent
- Current Market Communications & Associates Inc.
Current Market Communications is a Toronto based marketing and communications firm focused on increasing exposure and awareness for established and emerging companies in the fast paced public arena.
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