Why Investor Relations?
Investor relations focuses on helping companies achieve a realistic and fair market value for their stock. A successful investor relations program can help reduce the cost of capital for the company and ensure that shareholder interests are recognized and served.
If a company has 50 million shares outstanding that are trading at $10, the company's market value, or market capitalization, is $500 million. If the share price increases to $12, the company's market value has increased by $100 million to $600 million. The ultimate goal is to increase enterprise value and decrease the cost of capital. Here are two examples illustrating the benefits of a reduced cost of capital:
- A company wants to use its stock, rather than cash ...
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