What Is An Investor Relations Company?

An investor relations company is a company that is responsible for managing the mood of investors within a particular business framework. Investor relations companies are often contracted to handle their investor relations problems. In basic terms, these companies are essentially a middle man. They act as a go-between for investors and the board of directors. Although the board of directors should serve the board of directors, from time to time, there will be conflicts.

Responsibilities

The investor relations company is responsible for keeping investors happy. They are usually tasked with the express goal of keeping the investor mood as positive as possible, regardless of the circumstances.  They are responsible for assessing the overall tone of the investor base and reporting that information back to the board of directors.

Investor relations companies are often good sources of information for the inner workings of companies. Information that investors want about the company can often be obtained through these services. This is especially true of companies that are run through systems of quasi-democratic corporate governance.


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