Investor Relations - Technical Communications

-Joshua M. Jones

What to do after graduation...hmmm. Well, I'm in debt to a University and a Fraternity, a couple of parents, and and a couple of banks. So I should probably get a little income going on soon. I have been in school for 5 years now, so do I have the energy in me for law school...eh. Do I want a master's degree...can't conceive it. So let's graduate, with a plan.

I first learned about Investor Relations about two years ago when I interned for a company caller IR Partners Inc. They published a website called Firestocks.com...now defunct. It was an independent company that did IR work for about 12 other companies. So now your asking what IR work is? I defer to wikipedia for an understandable summary.

Basically, IRO's (Investor Relations Officers) serve two purposes depending on the need of the organization. They can play a disclosure-publication based role, where they craft the annual report, keep the SEC (Securities & Exchange Commision) informed of the fiscal status of the organization, and communicate the feelings of the investment community with management (ie. salty stockholders.)

The other role that IR can play is much more strategic and interesting to me. This is talented skills-based role, associated with raising capitol (money) and making strategic moves to help put an organization in a better financial position. Simply put, when a smaller company wants to raise capitol for a new division, plant, subsidiary, or opportunity in general, but they don't want to sell more shares of their stock, the IRO comes in and puts upper-management and the investment banking community in a room together, to put lots of financial options on the table. The IRO makes it happen, arranges the business trips, the meetings, and talks directly with the CEO.

So you say, Josh that's a pretty bold goal, I mean that's going take some time and effort, right?

Yes, but I have a plan that I'll share with you all now. I'm going to be working for a company that has a market-cap of at least $250 million, (relative worth of company.) I want to work for a large company, but not massive by today's standards. I will be working under the IRO doing all the grunt work no matter if that involves setting tables for meetings, getting coffee, and scheduling golf outtings. I will be doing this for at least three years, while I'm getting my C.F.A. (Chartered Financial Analyst.)

This is a three-year self-taught course that involves three levels of exams and let's just say they're more than tough. But, I will be learning the subject matter through my work as well, so I know I can do it. Once I achieve this, I will be looking for a promotion. Hopefully, I will continue my work and be qualified to become an IRO, then I will be able to market myself with experience and merit.

In the long-term I would like to start my own IR firm that takes on companies as clients. We would handle the IR. So we would bring our skills, contacts, and resources to the table to achieve the most lucrative solution possible for your organization.

Bonus vocabulary with links!

NIRI - The National Investor Relations Institute. This organization certifies IR professionals and requires them to sign a code of ethics.

Sarbanes-Oxley Act - In 2002 IR became much more critical with the adoption of the Sarbanes-Oxley Act, because it required all companies to provide more transparency in their fiscal activity, this is monitored by the SEC.