Thursday, July 28, 2011

Most Publicly Traded Companies are Making a Huge Mistake

Wouldn’t an investor that owned 10-20% of a company be entitled to management’s attention? Of course he would as his or her decisions could easily have a material effect on the company’s operations and ability to grow. Why then do so many publicly traded companies ignore the retail investor market when the segment represents a significant portion their shareholder base?

Of course, most of these companies do not even realize the mistake they are making. There are 30,000+ institutions in the world, each with stock purchasing power that far exceeds the typical retail investor. To them it is simply a matter of resource management; as workloads increase and budgets decline, it would only make sense to focus on institutions with more buying power.

However, the individual investor audience represents trillions of dollars in investable assets and it would be a mistake to completely ignore it. Because the most attractive segment of this audience makes investment decisions based on research and fundamentals, they often have long time horizons and become long term shareholders. Companies shouldn’t question the value of these individual investors.

As an information distribution and investor relations company, we understand the importance of the average retail investor and work hard to connect the community with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.

To learn more about our company and all we have to offer, visit www.About.QualityStocks.net

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