Many trades are being driven by digital technology today. Future investors will look online for financial information before purchasing stocks.
While you can’t believe everything you read online, savvy investors know to stick to reputable sources like the SEC and your IR site when researching stock options. And as you’ll find out below, it’s often investor relations websites that drive results more than any other trusted source online.
Continue scrolling to learn where investors are looking for information on your company and the importance of this source.
1. Investor Relations Site
According to Brunswick Group’s latest Digital Investor Survey, there is no better source of information than a company’s IR website.
In order to better understand the effects of digital sources on investor decisions, more than 500 institutional investors were surveyed. The most trusting and used sites for investors were found in their survey.
IR websites have a total trust rating 8.4 out 10 and are able to outperform traditional news sources like Bloomberg Financial Times, The Wall Street Journal, Financial Times and The Wall Street Journal.
More still, 92% of investors said they sought out a company’s IR website to investigate issues. Nearly two-thirds of these investors (72%) also reported they’ve used this information to make investment decisions.
With this much attention on your IR site, it’s a good thing you have total control over how your site looks and performs. It’s worth investing in beautiful web design and compelling copy to elevate your brand and financials so that your value proposition is as persuasive as it is credible.
2. Reddit and other Social Media Platforms
More than half (54%) of investors say they have done so. zeroReddit is a trusted news source. It would not be wise to ignore the influence this social media platform holds over stocks. Redditors are able to disrupt markets by dialing back at the beginning of each year.
GameStop’s market collapse was caused by the now-infamous r/WallStreetBets. Its members noticed how hedge funds were short selling the gaming company’s stock to pull its stock price down so that they could buy it back for less.
Redditors organized a short squeeze on these securities in retaliation. This increased shares by almost 30x, while the short-selling hedge money had to suffer huge losses to regain securities.
While a squeeze of this size probably won’t happen to your stocks, it’s in your best interests to understand the motivations behind retail investors, including those who scroll through r/WallStreetBets. They’re growing to take a larger piece of the pie, with the influence on your stocks to match.
3. Securities and Exchange Commission (SEC).
When investors need hard data, the U.S. Securities and Exchange Commission provides a reliable resource. They can find your company’s filings through the SEC’s EDGAR database.
EDGAR stands for Electronic Data Gathering, Analysis, and Retrieval System. It indexes all mandatory filings that are collected by the SEC. This includes annual, quarterly and current reports as well as insider trading and institutional investments and event reports.
Why is it important where Investors turn to get information?
Now it’s time to get to the most important question: why should IROs care about where investors learn about assets and liabilities? It’s all about perspective. By understanding where potential and current investors are coming from, you have a better idea of where they’re going to go.
You can use this information to aid in stock surveillance, to find the right investor or to quickly respond to market conditions.
The article Where can investors find information about your stocks? Entrepreneurship Life first published this post.