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By Rob Berick | November 2013

It’s time to rethink IR

“The problem with investor relations today is that it continues to get more primitive as the markets keep getting more sophisticated.”

Historically, the flow of information between a public company and the investing public was a relatively straight line. Public company news was consumed and compiled by research analysts (the “sell side”), who then made investment recommendations to their institutional clients (the “buy side”) and to the stockbrokers who served individual investors (“retail”). Once investment decisions were made—largely influenced by those recommendations—the sell-side analysts would then filter market sentiment back to the company to help its senior management team and board of directors understand its valuation and trading volume.

In this environment, the sell-side analyst helped corporate leaders understand market dynamics and investor perceptions, while looking to eliminate information asymmetry and create the time advantage necessary to drive profitable investment decisions for its buy-side clients. The former frequently rewarded the analyst with lucrative investment banking business. The latter paid healthy fees for proprietary research...

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URL:http://www.fallscommunications.com/white-papers/view/6

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