What is meant by "investor relations"?

Investor relations refers to the strategic management of communication between a company and its investors, which encompasses shareholders, potential investors, financial analysts, and other stakeholders. This function is crucial for ensuring that investors are well-informed about the company's performance, strategies, and outlook, fostering trust and transparency.

Strong investor relations efforts aim to provide investors with timely and relevant information, addressing their concerns and inquiries, and facilitating a better understanding of the company's value proposition. Effective communication can enhance investor confidence, encourage investment, and potentially improve the company's stock performance.

Other options, while they may be associated with aspects of corporate finance or governance, do not fully capture the essence of investor relations. For instance, managing shareholder meetings and corporate governance is a component of investor relations, but it does not encompass the broader communication strategy that is central to the definition.