How To Use Filings To Gain Passive Investor Support


For public company management teams, and microcap management teams especially, passive investors are a relatively easy to tap source of investor support

IR Magazine has a great article on “Leveraging IR to win the proxy vote of passive investors“. While the tips they share are specific to proxy votes, they can also be applied to general use of required filings to communicate with passive investors

Over 80% of Wall Street Investors read annual reports of companies they own but many regulatory fillings are too long, too difficult to read and, when drafted with only the SEC in mind, often do not address passive investors most fundamental questions

Below are some tips on How To Use Filings To Gain Passive Investor Support:

1. Remember that context matters – Use the space for voluntary disclosure – that not mandated by the SEC – to tell a story that creates a narrative and business context for the passive investor. 

2. Include a cover letter to highlight the most important information – A cover leader can come in many shapes and forms. From earnings releases to first pages of hard copy documents, cover letters are a great way for management to frame a situation and highlight important issues. For example; a newly public company can establish its identity and corporate objectives, a business in transition can lay out long-term initiatives and tracking metrics, or a company facing industry headwinds can explain how factors out of its control are affecting performance and returns.

3. Seize the opportunity to establish your corporate identity – Passive investors may not know a lot about our company but will take a quick look at your regulatory filings. Use the opportunity to tell these shareholders who you are! 

4. Use graphic design as a vital tool in your communications – Visuals continue to become an increasingly effective and import way for issuers to simplify and explain complicated information and illustrate key facts. Learn more about how “Investor Relations Visuals Help Investors Understand Your MicroCap” HERE









MicroCap IR

Passive Investors


Investor Relations


Proxy Votes

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