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 The Shareholders
 The Investment Community
 Security Analysts
 Investment Clubs
Individual Investor
•Lack the ability to understand or the inclination to strive to
understand complex financial data.
•Pr...
Composed of:
•Stockholders
•Security Analysts
•Trust Officers
•Bankers
•Financial Counselors
Function:
Counsel individuals...
Functions
• Fact Finding
• Passing judgement
on the merits of
securities
• Criticizing the
financial practices
and policie...
Investment clubs are formed by small group of persons
who meet regularly to discuss the merits of investment
in particular...
Corporations, through their shareholder-relations program,
are keeping these investors supplied with information about
cor...
 To arouse owner interest in the corporation
 Create a better understanding between the company, its
shareholders, and t...
 A corporation, or anyone else involved in the sale of a
new issue of securities is prohibited from using public
relation...
 Prompt release should be made whenever there are
important developments which might affect security values
or influence ...
Corporations with limited no. of shareholders designate the
secretary or clerk to be responsible for communicating with
sh...
1. Shareholders relations policy is to convince the
corporation’s investors and shareholders that it is a
profitable long-...
 Corporations conduct surveys because they want to
learn what investors think of the way management is
operating the comp...
 Effective shareholder relations requires that the
corporation’s shareholder-relations staff know the
characteristics of ...
 Corporations inform the communications to the
shareholders in order of frequency.
 Corporations inform shareholders abo...
 Information should be presented to stockholders in
simple, clearly understood, nontechnical terms.
 Stockholder communi...
 The annual report
 Interim reports
 Notices of annual and regional shareholder’s meetings
 Shareholder magazines
 An...
 The corporation’s annual report is the primary medium
of communication in stakeholder relations and a
secondary medium o...
 Annual reports include the following features:
o Financial information
o Production information
o Marketing information
...
In the intervals between annual reports, corporations
communicate with shareholders through interim reports
in the form of...
Notices of annual meetings are mailed to stockholders
together with a proxy form on which absentee
shareholders may vote f...
 Corporations publish quarterly shareholder magazines
and reports about company finances and developments
to secure under...
 Annual report advertising is placed by some
corporations in national consumer magazines and
newspapers in financial cent...
 Correspondence with individual shareholders is an
important factor in good shareholder relations.
 A letter of welcome ...
Corporations communicate shareholders and general
public through press releases to financial
magazines, daily news service...
Some large companies employ window display firms to
install displays of their products in brokerage-house
windows.
Shareholders are informed about corporate operations
through periodic mailings of booklets and folders
which cover a wide ...
To inform shareholders about the company’s
advertising and products, proofs of
advertisements, booklets and folders and ot...
 Shareholders who do not attend the annual or regional
shareholder meetings are mailed a post meeting report
of the proce...
Shareholders are encouraged to participate more
effectively in the affairs of their companies by means
of contests offerin...
 The employee periodical is the principal
medium, along with annual report and booklets.
 Special editions of annual rep...
 Shareholder films: Film are based upon a
corporation’s annual report and dramatize the
contributions to company progress...
 Annual shareholder’s meetings
 Regional shareholder’s meetings
 Open houses or plant tours for shareholders
 Personal...
 The corporate laws of every state require corporations
to hold annual meetings at which shareholders have an
opportunity...
 To make it possible for more shareholders to attend
corporation meetings and participate in company
affairs, many compan...
 It can be used to inform stockholders about
properties, operations and products of he company.
 It also gives them an o...
Management personnel visit shareholders to discuss
company finances and answer questions.
 Many corporations arrange periodic meetings with
security analysts and other members of financial
community to discuss c...
 Important lectures and forums in an investor’s
information program are given for shareholders and
prospective investors....
Financial public relations
Financial public relations
Financial public relations
Financial public relations
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Financial public relations

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Financial public relations

  1. 1.  The Shareholders  The Investment Community  Security Analysts  Investment Clubs
  2. 2. Individual Investor •Lack the ability to understand or the inclination to strive to understand complex financial data. •Primary motive is family security. •Interested in dividend policy, quality of assets and earnings. Capital Gains Investor •Primarily concerned with the future- historic growth of earnings, role of change of that growth, and the anticipated growth rate of future earnings.
  3. 3. Composed of: •Stockholders •Security Analysts •Trust Officers •Bankers •Financial Counselors Function: Counsel individuals and banks, insurance companies, pension funds, mutual funds, charitable foundations, universities and hospitals in evaluating, buying, and selling securities
  4. 4. Functions • Fact Finding • Passing judgement on the merits of securities • Criticizing the financial practices and policies of corporations They are employed by institutional investors, banks, brokerage houses, investment counseling firms, trust funds, and insurance companies to keep them informed about the financial status of corporations.
  5. 5. Investment clubs are formed by small group of persons who meet regularly to discuss the merits of investment in particular corporations and to invest club funds. They discuss investment objectives, study the principles and techniques of investing, and make investments in corporations after gathering information and weighing the risks involved.
  6. 6. Corporations, through their shareholder-relations program, are keeping these investors supplied with information about corporate financial status and future prospects. However, many corporations fail to understand the importance of keeping the shareholders informed.
  7. 7.  To arouse owner interest in the corporation  Create a better understanding between the company, its shareholders, and the financial community  Persuade stockholders to consume and recommend the purchase of products of the corporation  Reduce the turnover of shareholders and promote holding of stock as a long-term investment  Reduce stockholder criticism and organized opposition to management  Stabilize the market for corporate securities  Raise the prestige of a corporation in the eyes of the community by enhancing its standing among its owners
  8. 8.  A corporation, or anyone else involved in the sale of a new issue of securities is prohibited from using public relations as a part of the selling effort during or immediately before the offering period  A corporation should always avoid half-truths or false or misleading publicity to promote purchase or sale of stock  Price of a company’s stock should reflect company’s earnings, finances, and management, and a higher price should not be sought by publicity for the corporation and its stock
  9. 9.  Prompt release should be made whenever there are important developments which might affect security values or influence investment decisions of stockholders or the investing public Following are the activities that should be avoided to ensure compliance with the Securities and Exchange Commission:  Manipulating stock prices  Deliberate attempts to falsify a company’s financial position  overly optimistic sales and earning forecasts  withholding important financial information
  10. 10. Corporations with limited no. of shareholders designate the secretary or clerk to be responsible for communicating with shareholders, arranging for the annual meeting , reporting the proceedings, and handling all stockholder affairs. In large corporations, a stockholder-relations section is established in the public relations department under the direction of a stockholder-relations manager responsible for communication of information to the shareholders in an effective manner.
  11. 11. 1. Shareholders relations policy is to convince the corporation’s investors and shareholders that it is a profitable long-tern investment. 2. Its operations are well-managed 3. It is dedicated to a progressive program of production, sales, and growth supported by continuous research and developments.
  12. 12.  Corporations conduct surveys because they want to learn what investors think of the way management is operating the company and how the company is communicating with them.  The principle methods of conducting shareholder opinion surveys are mailed questionnaires and personal interviews.  Surveys are conducted at regular intervals by the shareholder-relations section of the public relations department, or by an outside counselor or opinion research organization.
  13. 13.  Effective shareholder relations requires that the corporation’s shareholder-relations staff know the characteristics of the shareholder public.  Mail surveys and personal interviews are the great means to determine shareholder characteristics.  By obtaining a better understanding of the shareholder public, communication problems may be solved more readily.
  14. 14.  Corporations inform the communications to the shareholders in order of frequency.  Corporations inform shareholders about their plans for expansion, new product developments, new financing plans, forecasts of sales, forecasts of earnings, profits on overseas operations, marketing strategy etc.
  15. 15.  Information should be presented to stockholders in simple, clearly understood, nontechnical terms.  Stockholder communications should be continuous from the day a shareholder acquires his stocks until he sell his holdings.  Management should tell shareholders both sides of its business story-the bad news as well as the good.
  16. 16.  The annual report  Interim reports  Notices of annual and regional shareholder’s meetings  Shareholder magazines  Annual report advertisements  Shareholder correspondence  Financial publicity  Financial window displays  Shareholder booklets and folders  Promotional literature  Reports of shareholder’s meetings  Shareholder contests  Employee-shareholder communications
  17. 17.  The corporation’s annual report is the primary medium of communication in stakeholder relations and a secondary medium of communication with non shareholder employee, community, distributor and supplier publics.  The annual report is an opportunity a company has each year to tell shareholders and other publics what it has done, is doing and plans to do.  It reflects a corporation’s image and the caliber of its management and it may attract new investors and affect the price of its stock.
  18. 18.  Annual reports include the following features: o Financial information o Production information o Marketing information o Personnel information o Miscellaneous information o Physical features of annual reports o Illustrations  Annual reports are distributed 15 days before the annual meeting to news media including television and radio commentators, editors, special financial writers, libraries, educational institutions and members of investment community.
  19. 19. In the intervals between annual reports, corporations communicate with shareholders through interim reports in the form of dividend enclosures, quarterly newsletters, folders, booklets and bulletins.
  20. 20. Notices of annual meetings are mailed to stockholders together with a proxy form on which absentee shareholders may vote for directors and on matters to be voted upon at annual meetings.
  21. 21.  Corporations publish quarterly shareholder magazines and reports about company finances and developments to secure understanding and support of owners.  In addition to financial news, these periodicals discuss new products, new plants and laboratories, research and other subjects of interest to owners.
  22. 22.  Annual report advertising is placed by some corporations in national consumer magazines and newspapers in financial centers.  These advertisements feature the highlights of current finances, build prestige for a company in financial community, and interest investors in acquiring corporate shares.
  23. 23.  Correspondence with individual shareholders is an important factor in good shareholder relations.  A letter of welcome from president is mailed to new shareholders. When a shareholder sells the stock, he or she receives a letter of regret, with the hope that they will again be numbered among the company’s owners.  Some corporations make regular mailings to security analysts discussing the economic progress of the area served by the company.
  24. 24. Corporations communicate shareholders and general public through press releases to financial magazines, daily news services and radio and television commentators.
  25. 25. Some large companies employ window display firms to install displays of their products in brokerage-house windows.
  26. 26. Shareholders are informed about corporate operations through periodic mailings of booklets and folders which cover a wide range of subjects, including company management, personnel, products, production facilities, plants, industrial outlook and executive speeches.
  27. 27. To inform shareholders about the company’s advertising and products, proofs of advertisements, booklets and folders and other promotional literature are enclosed with stockholder correspondence and dividend mailings.
  28. 28.  Shareholders who do not attend the annual or regional shareholder meetings are mailed a post meeting report of the proceedings.  Shareholder magazines carry word and pictures stories of shareholder meetings, condensed speeches by executives and illustrations of owners and management taking part in the program.
  29. 29. Shareholders are encouraged to participate more effectively in the affairs of their companies by means of contests offering prizes for constructive criticism and suggestions on the operations of the company.
  30. 30.  The employee periodical is the principal medium, along with annual report and booklets.  Special editions of annual reports in simplified terminology are prepared for employees.
  31. 31.  Shareholder films: Film are based upon a corporation’s annual report and dramatize the contributions to company progress and profits.  Television: closed-circuit television broadcasts of annual meetings are transmitted to regional meetings of shareholders in other parts of country; making it possible for shareholders who cannot attend the annual meeting to witness the proceedings.
  32. 32.  Annual shareholder’s meetings  Regional shareholder’s meetings  Open houses or plant tours for shareholders  Personal visits to shareholders  Meetings with members of financial community  Lectures and forums for investors
  33. 33.  The corporate laws of every state require corporations to hold annual meetings at which shareholders have an opportunity to exercise their rights to elect directors, hear reports of management and transact business.  Annual meetings provides an opportunity for the major executives of a corporation to establish friendly personal contacts with the people who are supplying the money to operate the business.  The meetings provide face-to-face exchange of information and opinion.
  34. 34.  To make it possible for more shareholders to attend corporation meetings and participate in company affairs, many companies hold regional meetings.  These are attended by employee shareholders to hear executives discuss the annual report, answer questions and announce plans for expansions.
  35. 35.  It can be used to inform stockholders about properties, operations and products of he company.  It also gives them an opportunity to see for themselves how their money is invested.  These events feature speeches by executives, product exhibits and motion pictures.
  36. 36. Management personnel visit shareholders to discuss company finances and answer questions.
  37. 37.  Many corporations arrange periodic meetings with security analysts and other members of financial community to discuss corporate finances and corporation progress; to answer questions; and to hear the chairman, president, and other officials discuss corporate finances and investment outlook for corporation’s securities.  These meetings are supplemented with tours of company’s facilities, demonstrations of new products, and motion pictures.
  38. 38.  Important lectures and forums in an investor’s information program are given for shareholders and prospective investors.  Many department stores sponsor the lectures as a service to their customers and local communities.

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