Why Shareholder Communication Services Are Key!

Investor relations firm

Are you an investor, financial analyst, or someone who works for a publicly traded company? If so you probably have a use for strong shareholder communication services. Did you know that over half (52%) of adults say that they or their spouse own stocks either individually or through funds? Whether or not you work for financial public relations or or anywhere in the investor relations industry the focus on shareholder communication is imperative. Here are a few of the reasons that shareholder communications is so important:

1. Trust – Statistically speaking shareholders and/or investors who are willing to stick with stocks over long periods of time, usually have been rewarded with strong returns. So, how do you make sure your shareholder sticks with you that long? One way is through effective shareholder communication services. If your shareholders can build a trust with you and your company then it is more likely that they will stick around for the long haul!

2. Confidence – You know probably better than anyone that investing is risky. Your shareholders feel the same way and it’s your job to make sure they don’t get too nervous and back out. Historically, stocks have averaged a yearly return of 10%, which is higher than the average yearly inflation rate of 3.2%. Keeping shareholders privy to this sort of information is one way to ensure that they have confidence in what you are doing on their behalf. Another way to make sure that your shareholders have confidence in you is keeping open lines of communication. If someone can reach you when they have a question or concern you will be able to ease their worries right away, whereas if they are constantly waiting to hear back from you their worries just increase.

3. Involvement – How rewarding is it to make a phone call to one of your shareholders to let them know that their stock just doubled or tripled? Keeping your shareholders involved in their investments is key when it comes to shareholder relations. If they are involved and feel like they are getting the attention they deserve then the more likely they will be to invest more with you and/or your company.

There is a reason that the stock market has been at the center of all business operations for nearly a century: people love seeing their money grow. Shareholder communication services are of the utmost importance and if done right it can increase their trust, confidence, and involvement with you!

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