Saturday, October 25, 2008

IR vs PR



Investor Relation(IR) is about fairly disseminating of company fundamentals, far more than it is about marketing or promoting a corporate image.

IR provides information and analysis so that investors will be able to develop a well rounded understanding of the company and its strategies, help to achieve a fair market valuation for its securities, create a body of investor support and a climate of favourable opinion.

The result is a loyal shareholder base which gives the company the ability to approach its capital management exercises with confidence. Ultimately, this will be reflected in the demand for the company’s shares and the price of those shares.

Essentially, IR is a component of capital management and an element of corporate strategy.

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