How Stock Surveillance Can Help Your Company Grow

How Stock Surveillance Can Help Your Company Grow
Photo : Photo by Burak Kebapci from Pexels

Being attuned to your shareholder base comes with many benefits, and stock surveillance can help you tap into them all.

Stock surveillance is an essential IR service that investor relations experts recommend for any public company. It helps monitor your shareholder base and interpret real-time data to predict movements that would otherwise blindside you.

Surprise over your shareholder movement is rarely a positive thing. An investor shedding their stock without warning can deliver a powerful punch to your capital, especially if you deal in thinly traded securities.

Besides being an early-warning system, stock surveillance helps you understand what makes your shareholders tick so that you can mitigate risk and take informed action.

Here are some additional reasons why you should add stock surveillance to your suite of IR technology. 

Real-Time Analytics

Surveillance dials you into trading analytics as they're happening. Real-time processing delivers data often, empowering you to take action as soon as something flags your notice - whether that's to take advantage of a burgeoning opportunity or to avoid a problem before it has time to blast off. 

Comparatively, traditional batch processing means you're analyzing data days (or even weeks) after you collect it. A slow approach like this puts your company one step behind your shareholders. 

The faster you can mine data and turn it into insights, the faster you'll react with intention, improving your productivity and ROI as a result.

So, what does real-time trading analytics look like? The best IR services employ a few tools to monitor activity and provide proactive insights into the months ahead. Here are some of them below:

●  Activist monitoring programs

●  Options order flow

●  Peer tracking

●  Relative performance drivers

Understanding Shareholder Motivation

Stock surveillance pulls back the curtain on shareholder behavior to give you a deeper understanding of market sentiment and investor expectations.

The surveillance tools listed above, when used together, provide unparalleled IR intelligence on both long- and short-term trends, including short selling, market volatility, and activism. They can also help you anticipate if shareholders will get into your stock or leave it.

Undergoing a Company Health Check

Proactive IR acts as a litmus test for your company as a whole, giving you insights into how investors perceive your company. The best IR services can parse through trade analytics and other IR intelligence to understand your performance, flagging any possible rumors or information about momentum trading that may not be immediately obvious.

Lead Generation

Perhaps the biggest advantage to stock surveillance is how you can leverage it to target new investors. Your IR service collects enough data to help you identify institutional investors that may be interested in your company.

Again, timing is everything. With real-time surveillance, you can make your move on receptive investors as soon as their interests align with your business.

The Takeaway

Proactive IR is a critical step to understanding your current shareholders and identifying future investors. Don't overlook what surveillance can do for your company. The right tools can help you get a lock on your base and strengthen your capital structure.

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