January 18, 2011
a stock investor’s guide to comprehending stock advisors
Stock promotion is an attempt by a publicly traded company to increase the demand and market value of its stocks using different techniques. This type of activity usually results in an artificial demand in the market. It is an effective and helpful strategy to improve the trading volume of a company’s stocks so that investors would purchase them.
A stock promoter is the one who is involved in promoting the stocks of a company using conventional and modern methods of promotion. He also makes agreements with different media groups or awareness groups for promotion purposes. A company can directly contact different stock promoters to get more people to buy and sell their shares in the market. The Internet, in fact, has been groundbreaking in promoting stocks and building campaigns to attract investors.
So what does do these people do exactly? They perform the same function as a marketing arm. Mainly, they get paid with a flat fee or with company stocks, which he acquires at a discounted rate. Great promoters function like salesmen but their level of interaction will be with the investors, media groups and big-time investors.
If you’re looking for one for your company, what qualities should you look for? For starters, look for a promoter with relevant experience in your industry. If he knows your industry, he will know the ins and outs of your business model and be able to hit the ground running. Since we are in the Information Age and everyone uses the internet to communicate, it is an advantage to get someone who is knowledgeable in online solutions. To reach a high trading volume and to push the stock up, it is very essential to keep others aware about your company.
Having a good working relationship with clients, and also investors, is a must for a competent person or group. One way to do this is to provide constant stock market updates to the parties concerned. These promoters should also provide their investors with the related information about a certain prospect by giving them the prospective company’s portfolio, stock trading trends, as well as financial reports.
It is important that these people provide you with fact sheets and stock profiles regarding the stocks that he is currently promoting. To raise the demand for a certain stock, it is also important that the promoter focuses on providing information instead of just selling it. An update every now and then is a good start and he can do it through fax marketing, newsletters, message boards, conference calls, and other means.
Stock promotion can also be very risky at times. Though it can help you boost your company stock’s value, it can also be the cause of your company’s immediate downfall. This can happen when the promoter you hired endorses your stocks through unethical methods. Misleading information can really pull your stocks down as well. So make sure that your stock promoter is of good standing before working with them.
Lastly, although a majority of the companies who do stock promotion are small, low trading volume companies, it doesn’t necessarily mean that big corporations should not involve themselves in stock promotions. More often than not, these big companies also need to promote their stock in one way or another in order to have a good public image to investors and to active traders in the market.
The journalist who wrote this exposition has detected the creator of a PSSO named Josh Yudell. Josh Yudell is the CEO of a large and well-respected investor relations firm and has run market awareness campaigns for hundreds of public companies. Josh Yudell resides in NY City.
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