Investor relations (IR) is a department, present in most medium-to-large public companies, that provides investors with an accurate account of company affairs. This helps private and institutional investors make informed buy or sell decisions. A company’s IR department also serves as a bridge for providing market intelligence to internal corporate management.
The purpose of IR is to ensure a company’s publicly traded stock is being fairly traded through the dissemination of key information that allows investors to determine whether a company is a good investment for their needs. IR departments are subdepartments of public relations (PR) departments and work to communicate with investors, shareholders, government organisations and the overall financial community.
The Function of IR Departments
IR teams are typically tasked with coordinating shareholder meetings and press conferences, releasing financial data, leading financial analyst briefings, publishing reports to the SEC and handling the public side of any financial crisis. Unlike other parts of PR-driven departments, IR departments are required to be tightly integrated with a company’s accounting department, legal department and executive management team (CEO, COO, CFO).
In addition, IR departments have to be aware of the changing regulatory requirements, and advise the company on what can and cannot be done from a PR perspective. For example, IR departments have to lead companies in quiet periods, where it is illegal to discuss certain aspects of a company and its performance.
Read more: Investor Relations (IR) Definition | Investopedia