Home | Investment & Finance

You may reproduce articles from The SmartNetWorld Article Library on your website, in your opt-in newsletter/ezine or ebook free of charge as long as you abide by the simple but important rules in our Terms of Service (T.O.S)
Your use of this article signifies that you accept and agree to abide by the rules of our T.O.S.

Most Important The article must be reproduced exactly as written by the Author including resource box complete with live hyperlinks.

Is IR Becoming Transient Like Trading?

By: Tim Quast

Let’s first take the pulse of the markets this inaugural week past of December 2007. It appeared to us that fundamental investors were most active December 4th, while trading lightened considerably by the 7th and carried the telltale signs of massive risk-management and hedging. IR folks, this means real investors finally followed traders into the maw – we’ve not seen much of that in the past couple months – prompting everybody else to take out insurance on their equity positions. No fund manager wishes to be caught shirtless on a Friday nowadays.

Now let’s get back to investor relations: this is a field that takes a great deal of time and effort to understand. It’s not a weekend project. If you want to grasp why equities do what they do, it helps to consider the immediate and far-off implications of actions and situations. The whole investor relations field needs to adapt to another way of thinking. Only when IR starts to consider the here and now can it really begin to figure out answers to bigger questions related to how or why stocks act the way they do.

If you doggedly persist in conducting your IR program altruistically, supposing that investors will simply follow your long-term business reasoning…well, as we’ve suggested before, go private. Because today’s public equity markets are no place for you.

Markets are unforgiving, tough places: you can’t assume your investors are looking to study and buy into your strategies for the distant future. That won’t get you too far in today’s markets… except, maybe, out of a public listing because you don’t fit in.

If, however, you’re willing to adapt and take some measure of interest in the juvenile hyperactivity (no offense anyone, I'm tying up the analogy) that seems to punctuate both contemporary societal and capital behavior, we think you’ll enjoy your job a whole lot more and feel better about happenings in the short-term to boot – which is great for sleeping well at night (and if you do, so will your CEO or CFO).

Article Source: http://articles-at.smartnetworld.com

Tim Quast is a fifteen-year Investor Relations veteran and founder of ModernIR. Learn more about electronic trading and investor relations. Learn more about Equity Analysis and trading inteligence. For more information, please visit: What is market structure?

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Click the XML Icon Above to Receive Investment & Finance Articles Via RSS!

Additional Articles From - Home | Investment & Finance

• Basics about Pensions - By : Roberto8 Rafael8
  
• Utah, a nations of bankruptcy captial - By : shashipal
  
• Bankruptcy Filing: Be Aware of Legal Nuances - By : Lesley Lyon
  
• America Turning Into A Nation Of Hamburger Flippers - By : marcelo20898289
  
• Some Words About Online Investment - By : David Vagner
  
• Forex strategies - By : sydney21 ifergan20
  
• BetterTrades Beginning Guide - By : Loredana Sargu
  
• Better Trades With The Right Options - By : Loredana Sargu
  
• The New Art of Foreign Financial Reporting - By : N. J. Lynn
  
• Forex Trading: The Most Common Flaws - By : N. Sai