Investor relations (IR) plays a crucial role in ensuring the fair trading of a company’s publicly traded stock. Its primary objective is to provide key information that enables investors to evaluate whether the company aligns with their investment goals. IR departments, which operate within the broader framework of public relations (PR), are responsible for engaging with investors, shareholders, government organizations, and the financial community as a whole.
Establishing an IR department often precedes a company’s initial public offering (IPO). During this pre-IPO phase, IR departments assist in establishing effective corporate governance, conducting internal financial audits, and initiating communication with potential IPO investors. By doing so, they lay the groundwork for transparent and reliable investor communications, which are critical for the company’s success in the public market.