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One of the primary goals that an investors relations officer pursues is to attract liquidity
1. The liquidity goal is much easier to achieve if there are a large number of registered shares available for trading, which is known as float
A key consideration for the investor relations department is the numer of shares available for trading
1. The investors relations staff can have an impact on a company´s float by paying attention to the following float management activities
  1. Activities to delay stock sales
    1. If a company has issued large amounts of shares as payment for acquisitions, it may be faced with potentially massive stock sales when the holders of those shares want to convert their holdings to cash
      1. This intense selling pressure can seriously depress the stock price, especially when shareholders
  2. Activities to increase the float
    1. Issue more shares
    2. Register stock (company initiative)
    3. Register stock (Employee initiative)
    4. Only issue common stock
    5. Minimize stock repurchases
    6. Break up stock blocks
    7. Conduct road shows
A company may set up a direct stock purchase plan (DSPP), under which shareholders can buy shares directly from the company´s stock transfer agent without going through a stockbroker
1. A DSPP is attractive to the investor relations department, because it tends to attract long-term investors who are interested in buying the shares of the company over the long term
A public company can create an employee stock purchase plan (ESPP), under which employees make regular payments to purchase shares of the company´s stock at regular intervals
1. An ESPP doesnt usually generate a great deal of cash for a company, and requires a modest amount of administrative overhead
Dividends are a distribution of a company´s earnings and are paid from its retained earnings
1. A company can set up a dividend reinvestment plan (DRIP), under which shareholders can elect to reinvest their dividends in the purchase of additional company shares
If a company enjoys a continuing run-up in the price of its stock, the price may eventually be so high that ir prevents individual investors from buying large blocks of stock
1. The resulting reduction in demand is not large, and is unlikely to have a significant impact on the price of the stock
If a company is planning to issue a dividend for the first time, its worthwhile for the investor relations officer to discuss the issue with the board before they approve the transaction
1. Always consider a vote to issue dividends as a long-term strategic issue, not just a short-term payout
Companies sometimes engage in stock buybacks, where the board of directors authorizes that a certain amount of cash be set aside for a repurchase program
Under the SEA a company is not allowed to enter into any transactions releated to its securities that will affect their prices or trading volumes
1. Purchase centralization
2. Time of purchases
3. Price of purchases
4. Volume of purchases
Odd lot shareholders
1. Buy back shares
2. Consolidance accounts
3. Offer direct stock purchase plan
4. Reverse stock split

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