One of the biggest uses of conference call services is for investor relations related announcements. These types of calls lend themselves well to conferencing technology and this article will go over some of the benefits of using telephone conferencing services as well as give some examples of usage.
Public companies have shareholders that are legally entitled to timely information regarding business operations and finance. That is why many companies have monthly investor relations conference calls in order to meet their legal duty but also to keep all interested shareholders informed on the latest events affecting their investments, be it financial or other.
The monthly conference call has become a standard practice among publicly traded businesses and a quick Google search confirms this. So why do companies hold conference calls with their shareholders or other interested parties?
Here are a few reasons:
- To update shareholders about new business opportunities. For example, a mining company holds a conference call discussing a recent trip to a new mine and the potential therein.
- To give a monthly summary of financial activity. For example, an investor relations call discussing quarterly income or a new stock dividend.
- To respond to recent public events affecting business operations. For example, how the Japanese nuclear situation is affecting delivery of electronic supplies.
There are many advantages that conference calls can offer for these types of shareholder meetings. For example:
1. Ability to record conferences and make them available on a website for offline viewing.
2. Ability to have a question and answer session with a conference operator and take questions from the audience in an orderly fashion.
3. Control your conference in real time and know who is on and who isn’t.
4. Ability to make rich media presentations using web conferencing.
So next time you would like to disseminate information to shareholders and other interested parties, consider a conference call.