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Broadgate Mainland Public Relations
www.broadgatemainland.com
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Description
Like the product that a public company sells, its stock, too, is a commodity that must be skillfully marketed and sold. Its clients are investors, often well versed in the product they are buying. Through effective communication with investors and regulators, financial PR plays a noteworthy role in helping boost share price, both directly by increasing investor demand for the stock itself, and indirectly by improving corporate image and hence the value of its brands, future revenue streams and recourse to capital and debt markets. While less important in good times, a good standing with investors is particularly valuable when trouble arrives and a company is forced to raise capital. Almost as important as a company’s expected returns or profits is the risk associated with those very same expected returns. Financial PR has a meaningful say in how the latter is perceived by investors. For example, a company that has historically provided detailed guidance and accurate forecasts will be seen as presenting a lower risk, reflected in a higher share price. Similarly, because the majority of investors are risk-averse, a company that is able to consistently avoid regulatory scrutiny, and in a timely fashion inform investors and stakeholders of any potential material adverse effects to its business - such as the cost of pending litigation, settlements, antitrust rulings and other far-reaching decisions by government bodies - will avoid being traded at the worst case scenario price. Either way, the reality is the same, but good financial PR is able to enhance the outside world’s perception of it, on which the share price is based.
Domain
www.broadgatemainland.com
Meta Keywords
Financial PR, Financial & Professional Services, Asset Management, Hedge Funds, Education Enterprise, Insurance, Private Equity
Date added
Saturday 08, 2014
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