If want to work in investor relations for a large, publicly traded company or want to offer strategic investor relations services for the investors in your small business, participate in educational opportunities to learn new strategies for this form of public relations. Since the information coming out of the investor relations department can influence the company’s profits or stock price, it’s vital to stay current with market regulations.

Ensure your investor relations skills and knowledge keep your investors properly informed. By seeking continuing education in investor relations advisory services, you’ll discover the tools and techniques used by the investor relations departments of prominent businesses in your field. Try to:

1. Take classes in investor relations strategy to earn a degree or certificate in this branch of public relations.
2. Enroll in seminars to stay current with the trends and legalities followed by top investor relations consulting firms and investor relations agencies.
3. Look for opportunities for online education offered by schools or investor relations consultants to sharpen your skills while on the job.
   

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Attend classes to receive accreditation to become more marketable to investor relations firms

Discover the basic strategies and principles of investor relations in a program offered by a university, extension program or management training institute. Most programs present graduates with a certificate or degree to signify your expertise in investor relations strategies.

I recommend: The NYU School of Continuing and Professional Studies offers a program resulting in a certificate in investor relations. Topics of the program that will help with investor relations consulting or corporate communications include interactions with the financial community, the investment process and corporate disclosure. Discover how to create a successful investor relations program after earning an investor relations certificate from UC Irvine Extension.

Check out focused investor relations seminars to discover new market regulations and strategies

Offered by investor relations consulting services or public relations groups, investor relations training modules allow you to discover new investor relations regulations, develop new marketing strategies or find ways to reconfigure your current department or program.

I recommend: Contact Beecher Carlson about its training module on investor relations and shareholder value. The seminar covers ways to develop an investor relations program to reduce shareholder litigation. Attend one of the investor relations seminars offered by the National Investor Relations Institute as an introduction or refresher on investor relations development and regulations.

Seek online education from an investor relations agency or expert to learn more at your own pace

If you're already employed with an investor relations firm or part of the investor relations department of your company, receive continuing education to keep your skills sharp. Online training lets you receive self-paced training, and you'll be able to apply the new strategies and techniques immediately.

I recommend: The online business training course from RemoteCourse is an interactive eLearning course covering everything from technical standards and costs to public and investor relations for online businesses. Discover new investor relations, media relations and public relations strategies through webinars offered by the Public Relations Society of America.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Even if your business isn't a publicly traded company, the skills you learn from investor relations education and training will be useful as you seek investors for your small business and strive to keep them informed of your company's developments and bottom line.

Investor relations—consistent communication with investors—remains key to elevating your company's standing and industry position. Investor relations services can help you develop a strategy and give guidance on delivering the company's message to potential investors.

There are thousands of publicly traded companies in the US alone. To rise above all the others, you need to develop an effective strategy in dealing with investors, one that recognizes shareholder value. Studies indicate that companies who utilize an investor relations firm significantly increase their disclosure, publicity and trading activity, among other things.

Consider the following factors when choosing an investor relations firm or consultant service:

1. Choose from investor relations agencies who have worked with clients similar in size to your own company. Ask for references and check them out. Also, ask for examples of past work. Evaluate the creativity of the message. Would you invest?

2. You'll most likely be working with your investor relations consultants long-term. Make sure it's someone you can work with comfortably.

3. Choose from investor relations companies who have a variety of contacts to get your message across.

4. From e-mail alerts to interactive newscasts, find an investor relations agency that takes full advantage of all available technology.

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Develop an investor relations strategy

Your investor relations strategy should cover a variety of facets including marketing and tracking investor perceptions, relaying important financial information, and communicating news and events. A variety of educational opportunities exist to freshen up your skills when it comes to developing sound strategy in investor relations. It's important to be clear about the company's objectives to potential investor relations firms.

I recommend: Check out the available courses sponsored by the National Investor Relations Institute. Rice University's Jesse H. Jones Graduate School of Management offers a download of an "Investor Relations for Dummies" PowerPoint presentation. Although some of the information may seem basic, use it as a refresher to make sure you have all your bases covered.

Consider investor relations consulting firms

A consultant who specializes in investor relations may be just the ticket you need to get your own investor relations program and strategy on the right track.

I recommend: Check out the services provided by Dallas-based Carla Kienast Consulting. Links on the left side of the page can also be used to find out about fees and past clients. Or consider The Piacente Group Inc. The consulting firm is based in New York City but also has offices in California and China.

Investigate potential investor relations firms

If you want a firm to handle all of your investment relations issues, it may be best to hire a hands-on investor relations firm that can jump in with development and work through implementation.

I recommend: From identifying your business message and analyzing the audience to preparing a communications kit, Christensen has many different options to help you with your investment relations goals. Based in New York City, Brainerd Communicators, Inc. is another full-service investor relations firm. Check out their services and then seek out their client list.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Reputation is important to investors. Choose an investor relations firm that you want to be associated with and is well-known in the investment community. The firm you choose should reflect the credibility of your company.

The role of investor relations is to communicate information about the company’s financial standing and corporate governance policy. Public companies are required by the Securities and Exchange Commission (SEC) to share this information with the media, shareholders and the general public quarterly and annually. The individual responsible for investor relations should have extensive details about current and upcoming challenges that may face a company and should have the ability to analyze stock trading patterns. Learning about investor relations key terms will help you gain a better understanding of the information shared in company financial reports.

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Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is a U.S. agency that protects the interests of investors. The agency does this by setting laws that require public companies to regularly disclose financial data. The SEC prohibits company misrepresentation and deceit and works to ensure that this data is shared in a timely manner.

I recommend: Read more about the role of this agency at the SEC website.

Financial strength

A company's financial strength is determined by comparing its liabilities to its assets. If a company's assets significantly exceed its liabilities, then the company is considered to have good financial strength. However, if the company has more debt then assets, the company is considered to have satisfactory or poor financial strength.

I recommend: Read more about financial strength at Progressive.

Valuation ratios

A valuation ratio determines how expensive or inexpensive a company or security is based on a measurement of profit or value. Price to earnings (P/E) ratio is the most common investment valuation measurement which is a ratio that compares the current price of a company's shares to the amount of earnings the company generates.

I recommend: Learn more about valuation ratios at Dummies.com.

Profitability

Profitability simply refers to a company's ability to earn a profit. A profitability ratio analyzes a company's ability to earn profits compared to its liabilities and other costs incurred during a specific period of time. Profit margin and returns on assets and equity are a few examples of profitability ratios.

I recommend: Read more about profitability at Investopedia.

Dividends

Dividends are stock distributions that a company must pay to stockholders. Dividend payments can be made in the form of money, property or stock of another company. Individuals can also receive dividend payments through a partnership, estate, trust, S-corporation or an association that can be taxed as a corporation.

I recommend: Read more about dividends at the Internal Revenue Service.

Market capitalization

Market capitalization, also known as market cap, is the sum of the current stock price per share multiplied by the number of outstanding shares. Because stock prices are constantly changing and stocks are frequently bought and sold, market cap is a temporary indication of a company's value.

I recommend: Find out more about market cap at ABCs of Investing.

To start your learning curve on investor relations, begin with a basic understanding of what it is and how it works. An investor relations department in a publicly traded company is responsible for disseminating information about the company and its performance to stockholders and other stakeholders. If you are a small to medium sized business, you might want to consider engaging an investor relations firm to assist you.

A firm that offers investor relations services can serve as a capital facilitator and mentor. They can help you analyze your goals, select specific program elements and develop a budget as part of their investor relations advisory services. Some investor relations firms have call centers and provide dedicated representatives who can help you with developing a list of brokers and funds for presenting information on your company. They can also take inbound calls from current and potential investors. For a broader compilation of all the various investor relations consulting services available:

1. Learn where to go for some basic information on investor relations.

2. Study the key elements of an investor relations strategy.

3. Find out what the basic services investor relations consulting firms offer.

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Start with some resources that have basic information of investor relations services

A good place to begin your education on investor relations services is to look over some observations and recommendations by top executives of public companies so you'll know more about what you can expect. You can also find a professional association that is dedicated to serving corporate officers and investor relations consulting firms.

I recommend: Core Communications Partners presents some excellent input from executives. National Investor Relations Institute is the professional association for investor relations professionals.

Evaluate what key strategies an investor relations agency can help you develop

Consider joining an online group that has regular conversations on various elements related to investor relations strategy. Find an investor relations agency that can provide you with the basic processes for your strategy.

I recommend: Toolbox.com has a sizable list of groups that discuss various elements of investor relations. Look to de Jong and Associates for a list of the capabilities and ongoing activities you should expect from investor relations agencies.

Learn the specifics of how investor relations firms help smaller companies

Every company has different structures, needs and current presence in the market. A firm that specializes in investor relations consulting will begin with an assessment of your business plan, your expansion plans and any issues you are currently facing. Subsequently, the investor relations consulting services can include the design of a thorough media relations campaign, which targets relevant media outlets.

I recommend: Small Cap Consulting provides a well thought out approach. AGORACOM has helped over 300 small cap firms with their investor relations, and offers a webcast that gives detail information about online investor relations.