Advance Investor Relations with Social Media

There’s no doubt that the advancement in society of social media is here to stay. The impact of social media in business and communication has stunned even the most savvy business owners. It’s simple, easy and convenient to gain instant promotion and visibility with social media. It makes sense that investor relations would become a vital part of social media.

Social Media and Investor Relations – Not Another Beardstown

Remember when those senior ladies got together and started the Beardstown Business and Professional Women’s Investment Club in Beardstown, IL? They may come to be remembered as the prototype of today’s investor relations groups forming all over social media networks. The idea that investments can be discussed with breakneck speed using social media presents an advancing format that helps investors to judge specific ROI on a broad range of investments.

According to a recent November 2014 report by the NIRI (National Investor Relations Institute) the ability to judge a company before making investments via social media help investors to avert loss. Experienced investors using social media shape the image of businesses and their potential worth to investors. The report stresses the need to know who in the investment world is in key positions to judge companies. When Carl Icahn uses Twitter to assess a company in terms of investments, this clearly shows the advancing of investor-relations through social media. It becomes a business imperative to respond to tweets that can have an effect on their investors.

Investor Relations

The clearest definition of investor is the ability to manage, responsibly, marketing, finance and securities compliance effectively to create a seamless integration. Thus, investor relations through social media can advance a business faster and with more stability by simply maintaining constant vigilance over various social media streams. This duty would be the domain of Investment Relations Officers (IROs) who determine the impact of publicity in relation to their shareholders. In this way, investor relations become “interactive” and all data streamed in social media becomes part of “interactive data.” Interactive data can impact management of publicity as “spin” that may be positively or negatively reported on social media. For example, a change in executive leadership or published business report misinterpreted on social media can impact investor relations negatively. Proper and immediate spin control on social media can avert further negativity. The key to advancing investor relations through social media is expeditious management.

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