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.
The stock promoter is the one doing the stock promotion for a certain company. Stock promoters use the traditional and modern means of promotion to endorse their client's stocks. They also make agreements with several media and stock awareness groups in order raise the exposure of the stocks. Due to the advancement in technology and the presence of the Internet, it is now easier to do stock promotions, as well as form campaigns to get investors interested in the company.
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.
Competent promoters also have a good relationship with their clients and investors. For starters, they make sure to keep their clients and investors updated with the changing situation of stock market. They don't simply pressure their clients to buy because of hearsay; they also show the hard facts about the future prospects of the company by showcasing the company portfolio, financial statements, and stock trends.
Stock sheets and profiles about the shares they are promoting should also be provided by the promoters. All these information are necessary in order to make a significant demand for a particular stock. Some of these people provide information through message board advertising, press releases, conference calls, fax marketing, and many more. All of these methods will definitely boost the stock's demand.
Though stock promotion is a great option to increase your company's stock price, it can also cause your company's downfall. This usually happens if your promoter uses unethical promotion methods. Misleading press releases by your promoter could really push your stock prices downwards. So, make sure that you have checked your stock promoter's background before hiring them.
Lastly, while it is the small companies with low trading volumes that often decide to do some stock promotion, it does not mean that successful companies should not be involved in stock promotion activities. Successful companies also need stock promotion to make themselves look attractive to investors as well as to the general public. Through stock promotion, you will not need Bloomberg coverage to make yourself appealing to investors.
The stock promoter is the one doing the stock promotion for a certain company. Stock promoters use the traditional and modern means of promotion to endorse their client's stocks. They also make agreements with several media and stock awareness groups in order raise the exposure of the stocks. Due to the advancement in technology and the presence of the Internet, it is now easier to do stock promotions, as well as form campaigns to get investors interested in the company.
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.
Competent promoters also have a good relationship with their clients and investors. For starters, they make sure to keep their clients and investors updated with the changing situation of stock market. They don't simply pressure their clients to buy because of hearsay; they also show the hard facts about the future prospects of the company by showcasing the company portfolio, financial statements, and stock trends.
Stock sheets and profiles about the shares they are promoting should also be provided by the promoters. All these information are necessary in order to make a significant demand for a particular stock. Some of these people provide information through message board advertising, press releases, conference calls, fax marketing, and many more. All of these methods will definitely boost the stock's demand.
Though stock promotion is a great option to increase your company's stock price, it can also cause your company's downfall. This usually happens if your promoter uses unethical promotion methods. Misleading press releases by your promoter could really push your stock prices downwards. So, make sure that you have checked your stock promoter's background before hiring them.
Lastly, while it is the small companies with low trading volumes that often decide to do some stock promotion, it does not mean that successful companies should not be involved in stock promotion activities. Successful companies also need stock promotion to make themselves look attractive to investors as well as to the general public. Through stock promotion, you will not need Bloomberg coverage to make yourself appealing to investors.
About the Author:
The author of this exposition has spotted an expert 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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