Thursday, December 31, 2009

The next steps for investor relations are straightforward:


First, companies, funds and countries that wish to inform their constituency should maintain and publish FAQs (frequently asked questions), a common practice in industry. All questions with whatever favorable or unfavorable answer can be made available on a bulletin board. It is the next step to the ultimate in transparency, the ultimate being when the answers are created automatically regardless of the questions asked.

Second, companies should actively trade their own shares with open disclosure of transactions on an instantaneous basis. Companies would reveal their own interplay between business conditions, availability of capital and their assessment of prospects by their actions.

Third, and in the same vein, insiders would be encouraged to trade with no reservations on when, except that they would have to be identified as an insider.

Technology makes all these possible, and investor relations would be advanced, providing the user with live, real and significant information individually customized for each. It is possible today. But no one has done it.

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