The rise of retail investment is changing the landscape of the financial markets, and publically listed companies need to adapt their investor relations strategies accordingly.
Retail investment has been on the rise in recent years, driven by a number of factors, including:
In Australia, the number of retail investors has grown by 50% in the past five years, according to the Australian Securities and Investments Commission (ASIC). Retail investors now account for over 40% of all trading on the Australian Securities Exchange (ASX).
Retail investors are also becoming increasingly sophisticated. In the past, retail investors were often seen as being more likely to trade on emotion and less likely to do their research. However, recent studies have shown that retail investors are now just as likely as institutional investors to use fundamental analysis when making investment decisions.
The rise of retail investment has a number of implications for publically listed companies. First, it means that companies need to be more focused on their investor relations activities. Retail investors are more likely to invest in companies that they understand and that they feel have a strong relationship with.
Second, the rise of retail investment means that companies need to be more careful about how they communicate with investors. Retail investors are more likely to be influenced by social media and other online sources of information. Companies need to make sure that their communications are clear, concise, and accurate.
Here are some additional statistics on the rise of retail investment:
The rise of retail investment is a significant trend that is changing the landscape of the financial markets. Publicly listed companies need to be aware of this trend and adapt their investor relations strategies accordingly.
Quarterback can help publically listed companies to supercharge their investor relations with data that helps them to understand how their investor relations activities are impacting the share price. Quarterback's data can help companies to:
By using Quarterback's data, publically listed companies can improve their investor relations and attract more retail investors