CHAPTER 8: Investor Relations

Investor Relations (IR) is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation. Investor Relation is very important part of corporate communications, because in the absence of investor relation department in the company, all the IR management is handled through either Corporate communications department or Public relations department.

Investor Relations Strategy:

The Company's investor relations are not just pertaining to individual investors, but individual investors are the only the part of investors, rather institutional investors are more important.

Not only the investors are importnt but the company has to maintain good relation with intermediaries like Analysts, Media and Rating Agencies.





Objective of Investor Relations:

• Explain the company’s vision, strategy and potential to investors

General Electric has introduced the way to maintain relations with all the investors by explaining the focus, vision and strategies of the company.

• Ensure that expectations of the company’s stock price are appropriate for the earnings, prospects, the industry outlook, and the economy

The CEO of the company is explaining the results of quarter results.

• The stock price should not fluctuate very much