Chapter 2

What Is Investor Relations?

The professional organization of investor relations officers, National Investor Relations Institute (NIRI), adopted the latest definition of the profession in March 2003. Investor relations is defined as “a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.”1 This definition was a significant step forward from the previous version adopted by NIRI in 1996, where investor relations was labeled “a marketing activity” with the purpose of “providing ...

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