what are investor relations ir 
the investor relations ir department is a division of a business usually a public company whose job it is to provide investors with an accurate account of company affairs this helps private and institutional investors make informed decisions on whether to invest in the company understanding investor relations ir investor relations ensures that 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 sub departments of public relations pr departments and work to communicate with investors shareholders government organizations and the overall financial community companies normally start building their ir departments before going public during this pre initial public offering ipo phase ir departments can help establish corporate governance conduct internal financial audits and start communicating with potential ipo investors for example when a company goes on an ipo roadshow it is common for some institutional investors to become interested in the company as an investment vehicle once interested institutional investors require detailed information about the company both qualitative and quantitative to obtain this information the company s ir department is called upon to provide a description of its products and services financial statements financial statistics and an overview of the company s organizational structure the ir department s largest role is its interactions with investment analysts who provide public opinion on the company as an investment opportunity investor relations and legislationthe sarbanes oxley act also known as the public company accounting reform and investor protection act was passed in 2002 increasing reporting requirements for publicly traded companies this expanded the need for public companies to have internal departments dedicated to investor relations reporting compliance and the accurate dissemination of financial information 1in the aftermath of the financial crisis the obama administration passed the dodd frank wall street reform and consumer protection act of 2009 to prevent financial institutions from taking excessive risks and introduced new measures to prevent lenders from exploiting consumers to achieve this the legislation established an independent agency called the consumer financial protection burea cfpb tasked with setting and enforcing clear standardized rules for companies providing financial services 2the legislation strengthened investor relations by requiring more transparency across the financial system for example the cfpb now requires that a mortgage disclosure comes in a single form that outlines associated risks and costs allowing consumers to compare loans with other lenders similarly the legislation strengthened the credit card accountability responsibility and disclosure card act of 2009 requiring issuers to disclose rates and fees clearly to help customers make more informed financial decisions additionally the reforms prohibit credit card companies from directly marketing promotions to young consumers 3investor relations functionsir teams are typically tasked with coordinating shareholder meetings and press conferences releasing financial data leading financial analyst briefings publishing reports to the securities and exchange commission sec and handling the public side of any financial crisis in addition ir departments have to be aware of 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 the ir department s largest role is its interactions with investment analysts who provide public opinion on the company as an investment opportunity these opinions influence the overall investment community and it is the ir department s job to manage analysts expectations goals of investor relationsir is intended to increase and sustain investor and other stakeholder confidence by giving them accurate and timely information regarding the company s financial and operating performance it s also used to communicate the strategic plans and objectives ir seeks to maximize shareholder value by giving investors a thorough picture of the business strategy and expansion objectives of the company this may enhance interest from existing investors boost demand for the company s shares and ultimately raise the share price ir is also intended to enhance corporate governance by making sure that the business complies with pertinent laws rules and moral guidelines this could increase the company s access to capital markets as well as its reputation and trust with investors in this realm ir is meant to invoke confidence that a company is adhering to all of the required laws set forth by governing bodies communication is also made easier because to ir which acts as a conduit between a firm s stakeholders and investors this gives investors access to key decision makers within the company this can also support the company in addressing investor issues giving management input and fostering positive connections with its stakeholders companies often have pages on their website dedicated to investor relations this section will house financial statements external disclosures sec filings or annual reports benefits of investor relationsby leveraging ir companies can increase their access to capital markets which can enable them to obtain finance more effectively and at a reduced cost this is done by developing relationships with investors and analysts ir contributes to greater transparency by delivering accurate and timely information to investors about a company s financial performance strategic positioning and other significant developments investor trust can be increased and the company s reputation can be enhanced as a result effective ir may also assist businesses in growing their investor base and luring fresh capital by attracting new investors and raising demand for the company s stock effective ir can assist raise the liquidity of a company s shares this could enhance the company s worth and make it easier for all investors to trade companies can increase their access to capital markets which can enable them to obtain finance more effectively and at a reduced cost by developing relationships with investors and analysts effective ir may also assist businesses in growing their investor base and luring fresh capital last by ensuring that businesses adhere to pertinent laws regulations and moral standards ir aids in enhancing corporate governance this could increase the company s access to capital markets as well as its reputation and trust with investors 