Investor relations consulting firms

Although most people might think of the stock market as a thoroughly modern invention, stocks and stock trading have been at the heart of commerce for nearly a millennium. Without the stock market, the gears of industry would grind to a halt. And at the center of the stock market, you’ll find the investor relations industry.

Unfortunately, because the public is so often disconnected from the day-to-day operations on Wall Street, not enough people realize the crucial role this industry plays in our economy. It’s part of a disconnect between public life and corporate life, and one that the investor relations services are trying to correct. If you’ve never heard of the investor relations industry, then it might be helpful to think of it as financial public relations, or corporate communications.

In 2015, just 52% of U.S. adults say that they own stocks, including through funds. And according to the Pew Research Center, the wealthiest 10% of American citizens owns as much as 80% of all stocks and mutual funds. This, despite the fact that stocks have an average return on investment of 10%, much higher than inflation.

The investor relations industry connects a corporation to their stock holders, and because anyone can start investing in stocks, the public at large. In fact, if a corporation fails to invest and maintain shareholder relations, they could run afoul of regulatory bodies like the Securities Exchange Commission.

And in the last decade, corporations have been stepping up their investment in investor relations solutions. More and more, companies are hiring financial public relations firms that provide instant, digital information to their shareholders, the media, and anyone else interested in learning more.

If you’re interested in investing in stocks, then the investor relations industry acts as a go-between for you, the shareholder, and the executive management structure of the company. This helps ensure that stockholders always have the information they need to make informed decisions.

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