CHAPTER 1

Investor Relations Background and History

Over the past several years, the investment landscape has seen much change, and with that, the operating environment for investment relations officers (IROs) has been transformed. This chapter addresses what investor relations (IR) is, explains its history, and provides details about the stock markets and key financial acts.

The Stock Market Explained

Stocks are equity investments that represent ownership in a company. Owning stock entitles the investor to part of that company’s earnings and assets. There are two types of stocks: Common stock and preferred stock. Stockholders have voting rights with common stocks, but no guarantee of dividend payments. However, preferred stocks provide no voting ...

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