The terms investor relations or financial communication are public relations tasks and refer to the cultivation of relationships with shareholders, investors, analysts and the financial media at public limited companies.
Each of the target groups has different basic requirements and intentions, different expectations and different investment horizons, so that they must be dealt with in different ways. Target group-optimised information and corresponding measures are required here.
Investor relations refer to profit-oriented organisations. They are therefore classified as a discipline of corporate communications.
Creating clarity for investors and the public
Investor relations aims to make information such as company reports, presentations or IR pages available on the internet so that the development of the company's value can be assessed from different sides. Unclear communication and uncertain publications can lead to the same effects as poor profit figures, namely to undervaluations of the share. The task of IR is to avoid both. Exaggeratedly positive statements about the course of business or the profit outlook also lead to a loss of confidence.
Increasing the turnover of traded shares with the aim of avoiding price fluctuations in exness login due to too low turnover or undervaluation is the primary strategic goal of investor relations. In addition, financial communication strives to know many investors in order to support them in buying and selling shares and to mitigate the risk of hostile takeovers.
Investor relations tasks
An important aspect of financial communication beyond the legally regulated mandatory publications (ad hoc announcements) is the creation of transparency and fair information for all market participants. Conferences and roadshows are helpful for this. So-called "designated sponsors" can play a major role in the market's perception of a company.
Perception by research houses, also known as "coverage", also helps the AG to gain greater attention. The company can commission such research directly. However, this will be perceived by the public as not very serious, since such a direct commission creates a conflict of objectives for an analyst.
Ad hoc announcements
Ad hoc announcements are intended to ensure a uniform supply of information not to shareholders but to all market participants. With their help, the disclosure obligations of issuers, which are regulated in the German Securities Trading Act (WpHG), are met. Ad hoc announcements are often also referred to as ad hoc announcements, stock exchange announcements or often as mandatory announcements.
Challenging resolutions of the AGM
Resolutions of the general meeting may be challenged by the shareholders. A resolution of the AGM can only be challenged on justifiable grounds such as breach of law and breach of the Articles of Association.
Another exemplary ground may be if another shareholder has sought special advantages to the detriment of the company for himself or a third party by exercising the voting right and the resolution was subject to this purpose.
Shareholders' forum helpful
All shareholders have been facilitated in asserting their rights by the option of contacting other shareholders of the company in a shareholders' forum. In the forum, the shareholder can name the motion, request or project himself, whereby the thematic discussion or justification is not permitted.
This must be done outside the forum. The shareholder may provide a contact address, such as a homepage or e-mail address. The motions can be written in German or English. The forum itself only serves to establish contact.
