Ten Commandments Of Investor Relations

These are IRG’s Ten Commandments of Investor Relations. Study and live by these rules, and you will likely experience a positive reception from individual investment professionals (IPs) and the investing community at large. An IP can be an analyst, trader, money manager, retail broker, newsletter writer, or anyone else in the financial industry who has the ability to positively impact your stock.

1.  Besides your immediate staff, the IP is the most important person to your company.

2.  The IP is not dependent on your company — you are dependent on the IP. Work with them and provide them information so that they become active cheerleaders for your company's stock.

3.  The IP is not “interrupting” your daily responsibilities — he or she is essential to the success of a publicly traded company.

4.  The IP does you a favor by listening to your company pitch. You are not doing them a favor by going to see them. They have plenty of companies to choose from among the 13,000 or so publicly traded companies. It is your responsibility, working with your IR firm, to convince him or her that your company should be a part of his or her portfolio.

5.  The IP is as much a part of your business as anything else — including the science, research, sales, corporate partners, employees, offices, etc.

6.  The IP is not a cold statistic. He or she is a person with feelings and emotions, just like you. Treat the IP with respect, just as you would want to be treated if the situation were reversed.

7.  The IP is not someone with whom to argue or match wits. If you do, you may find yourself winning the battle but losing the war.

8.  It is part of your job to satisfy the needs, wants and expectations of IPs and, whenever possible, to unearth their fears or resolve any complaints or reservations that might prevent them from investing in your company.

9.  The IP deserves the most attentive, courteous and professional treatment you can provide. Respect his or her time by arriving or calling promptly at the scheduled time.

10.  The IP is the lifeblood of a public company. Always remember that without IPs you would not have a public company, because there would be no research reports, no market-makers quoting your stock, no institutional holders providing a steady base for growth, and no retail brokers pitching it to new public investors — all the elements necessary for your company’s ultimate success.