The importance of investor relations in the investment world

Investment relations is one of the key functions in publicly traded companies or companies that open their doors to shareholders, as well as investments from investment companies. Their role is to inform would-be investors about the opportunity in investing on their companies’ future. According to finance guru Scott Tominaga, it requires a combination of finance, marketing, and communication skills to be successful. Here are some reasons why investor relations is key in the investment world.

An investor relations officer represents the company to its investors. It may also go the other way around as investment firms also employ investor relations officers to represent their firm to companies they are looking to invest in. Their job is to inform or seek information on the company’s financial status, provide regular reports for existing accounts, as well as come up with feedback for management and the board of investors.

According to Scott Tominaga, companies often have their own investor-relations department to manage the expectations and deliver results to their clients. This can only be done through effective communication, proper handling of data, and the precise dissemination of information to specific parties.

Without investor relations, companies would have difficulties releasing financial data, coordinating meetings with investors, conducting press conferences with shareholders, as well as publishing reports with the Securities and Exchange Commission. The department is highly regarded by most companies because it treats them just as importantly as finance and legal departments.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has almost two decades of experience in the hedge fund and financial services industry. He has an extensive understanding of the middle and back office, accounting, compliance, and administrative functions within financial services firms. For more insightful reads on investment and finance, visit this page.