Infographic: The Modern Era of Investor Relations
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The Modern Era of Investor Relations

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The Modern Era of Investor Relations

The Modern Era of Investor Relations

How New Media has Ushered In a Better Experience For Investors

“Modern Era of Investor Relations” infographic presented by: Dajin Resources

The internet’s explosion in popularity is attributed mainly to the invention of the first graphical web browser in 1993. Since then, the way investors have gotten information on companies and financials has changed dramatically.

Let’s take a look at how modern company websites and social media create a better experience for investors today.

How Investors Get Company News Releases

Then: Companies used to issue press releases to get information to shareholders and potential investors through snail mail and thermal fax paper. Companies would also cold call potential investors to let them know the gist of the news.

Now: Information is automatically distributed in real-time when it becomes available. Websites, social media, email blasts, newswires, and third-party websites get the information out seconds within it being public.

How Investors Do Due Diligence

Then: Investors could not seek out information easily. They relied on new tips from their stock broker, or were contacted by companies directly. It was difficult to fact check information, and investors relied heavily on newsletter writers to supply due diligence and tips.

Now: Today, information is so abundant through the internet that verifying its validity is the most important concern for investors. Reputation is key. Investors can get and fact check information from company websites, government securities websites, social media, blogs, analysts, chats, email blasts, phone calls, professional investor services, newsletter writers, and local conferences.

How Investors Check Stock Prices

Then: Investors could check the price in a newspaper or find it scrolling on a stock ticker on TV. For smallcap stocks, they relied on their brokers. In the early internet days, delayed stock quotes could be found.

Now: Investors can get stock quotes in real-time for free or for cheap. These provide the full depth, showing bids and asks in the primary market to give an accurate picture of the stock’s activity.

How Important is it to Provide Investors With What They Need?

Today there are more tools in each company’s communications toolkit than ever before. A Thomson Reuters Extel whitepaper in 2012 found that the Top 10 European companies with Best Shareholder Communications outperformed the market by 28.8% since 2007.

Keys to Modern Media

Here’s how companies can take steps to help ensure the best experience for investors.

Modern website

Today’s company websites are a step above the websites of even 5-10 years ago. Not every company has adopted these new possibilities – but for those that have, the investor experience is much better.

Anatomy of a modern website:

  • Dynamic homepage: Populated by up-to-date content that is always changing
  • Different perspectives: Company news is accompanied by different perspectives on the sector and industry
  • Up-to-date media: Presentations, maps, fact sheets, photos, infographics, and other rich media are current
  • Easy to read and navigate: The website is simple and intuitive, which allows investors to find what they need.

Other considerations to make a website top-notch include: having accessible stock quote on the company, easy email newsletter signup option, objective feel that is not too self-promotional, and real photos of company instead of stock images.

Website quality and accuracy is paramount, as a recent investor survey by SNL IR Services found that 60% of investors visit company websites either daily or weekly. This is why the teams behind modern websites monitor analytics very closely, such as bounce rates, open rates, the reach of posts, and keywords. It’s important to make the website as useful as possible, otherwise it can be detrimental to the company’s success.

Social Media

Social media has come a long way in the last five years. Today, almost 80% of institutional investors use social media as a regular part of their workflow.

Good social media content allows investors to:

  • Get breaking news on stocks they follow
  • Gain perspectives on different topics
  • Interact with other investors or industry people
  • Become thought leaders on topics

To help investors accomplish these goals, its important for companies to curate their content to cover other topics and perspectives outside of their company and sector.

Third-Party Media

Media websites provide a means for coverage and eyeballs for all stocks, regardless of size.

Strong media from reputable networks can increase awareness of a stock and liquidity. However, like social media, such coverage can be a double-edged sword. If companies are represented unprofessionally by third-party media, it can backfire.

Therefore, it is important companies do their best to ensure that coverage of their stock is reputable, professional, fair, and accurate.

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Misc

How Has Car Safety Improved Over 60 Years?

Seatbelts first became mandatory in the US in 1968. Since then, new technologies have greatly reduced road fatalities.

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How Has Car Safety Improved Over 60 Years?

Did you know that in 2019, there were 6.7 million car accidents in the U.S. alone?

This resulted in 36,096 deaths over the year—an awful statistic to say the least—but one that would be much worse if it weren’t for seatbelts, airbags, and other modern safety devices.

In this infographic, we’ve visualized data from the U.S. Bureau of Transportation to show how breakthroughs in car safety have drastically reduced the number of motor vehicle fatalities.

Measuring Safety Improvements

The data shows the number of fatalities for every 100 million miles driven. From a high of 5.1 in 1960 (the first year data is available), we can see that this metric has fallen by 78% to just 1.1.

YearFatilities per 100 million miles
19605.1
19704.7
19803.4
19902.1
20001.5
20101.1
20191.1

What makes this even more impressive is the fact that there are more cars on the road today than in 1960. This can be measured by the total number of miles driven each year.

Vehicle Miles Driven

So, while the total number of miles driven has increased by 371%, the rate of fatalities has decreased by 78%. Below, we’ll take a closer look at some important car safety innovations.

1. The Seatbelt

The introduction of seatbelts was a major stepping stone for improving car safety, especially as vehicles became capable of higher speeds.

The first iteration of seatbelts were a 2-point design because they only looped across a person’s waist (and thus had 2 points of mounting). This design is flawed because it doesn’t hold our upper body in place during a collision.

Today’s seatbelts use a 3-point design which was developed in 1959 by Nils Bohlin, an engineer at Volvo. This design adds a shoulder belt that holds our torso in place during a collision. It took many years for Volvo to not only develop the device, but also to convince the public to use it. The U.S., for instance, did not mandate 3-point seatbelts until 1973.

2. The Airbag

The concept of an airbag is relatively simple—rather than smacking our face against the steering wheel, we cushion the blow with an inflatable pillow.

In practice, however, airbags need to be very precise because it takes just 50 milliseconds for our heads to collide with the wheel in a frontal crash. To inflate in such a short period of time, airbags rely on a chemical reaction using sodium azide.

The design of an airbag’s internal mechanism can also cause issues, as was discovered during the Takata airbag recall. As these airbags inflated, there was a chance for them to also send metal shards flying through the cabin at high speeds.

Dual front airbags (one for each side) were mandated by the U.S. government in 1998. Today, many cars offer side curtain airbags as an option, but these are not required by law.

3. The Backup Camera

Backup cameras became a legal requirement in May 2018, making them one of the newest pieces of standard safety equipment in the U.S. These cameras are designed to reduce the number of backover crashes involving objects, pedestrians, or other cars.

Measuring the safety benefits of backup cameras can be tricky, but a 2014 study did conclude that cameras were useful for preventing collisions. A common criticism of backup cameras is that they limit our field of vision, as opposed to simply turning our heads to face the rear.

Taking Car Safety to the Next Level

According to the National Highway Traffic Safety Administration (NHTSA), having both seatbelts and airbags can reduce the chance of death from a head-on collision by 61%. That’s a big reduction, but there’s still plenty of room left on the table for further improvements.

As a result, automakers have been equipping their cars with many technology-enabled safety measures. This includes pre-collision assist systems which use sensors and cameras to help prevent an accident. These systems can prevent you from drifting into another lane (by actually adjusting the steering wheel), or apply the brakes to mitigate an imminent frontal collision.

Whether these systems have any meaningful benefit remains to be seen. Referring to the table above shows that fatalities per 100 million miles have not fallen any further since 2010.

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Science

Draining the World’s Oceans to Visualize Earth’s Surface

More than two-thirds of Earth’s surface is covered by water and hidden from sight. This animation drains the world’s oceans to reveal the ocean floor.

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Draining the World’s Oceans to Visualize Earth’s Surface Share

Draining the World’s Oceans to Visualize Earth’s Surface

Although many maps of our planet go into great topographical detail on land, almost two-thirds of the Earth’s surface is covered by the world’s oceans.

Hidden from sight lie aquatic mountain ranges, continental shelves, and trenches that dive deep into the Earth’s crust. We might be familiar with a few of the well-known formations on the ocean floor, but there’s a whole detailed “world” that’s as rich as the surface, just waiting to be explored.

This animation from planetary researcher James O’Donoghue of the Japan Aerospace Exploration Agency (JAXA) and NASA simulates the draining the world’s oceans to quickly reveal the full extent of the Earth’s surface.

How Deep Does the Ocean Go?

Above sea level, Earth’s topography reaches all the way up to 8,849 meters (29,032 ft) to the top of Mt. Everest. But going below sea level, it actually goes deeper than the height of Everest.

Open ocean is called the pelagic zone, which can be broken down into five regions by depth:

  • 0m–200m: Epipelagic (sunlight zone). Illuminated shallower waters that contain most of the ocean’s plants and animals.
  • 200m–1,000m: Mesopelagic (twilight zone). Stretches from where 1% of surface light reaches to where surface light ends. Contains mainly bacteria, as well as some large organisms like the swordfish and the squid.
  • 1,000m–4,000m: Bathypelagic (midnight zone). Pitch black outside of a few bioluminescent organisms, with no living plants. Smaller anglerfish, squid, and sharks live here, as well as a few large organisms like giant squid.
  • 4,000m–6,000m: Abyssopelagic (abyssal zone). Long thought to be the bottomless end of the sea, the abyssal zone reaches to just above the ocean floor and contains little life due to extremely cold temperatures, high pressures, and complete darkness.
  • 6,000m–11,000m: Hadopelagic (hadal zone). Named after Hades, the Greek god of the underworld, the hadal zone is the deepest part of the ocean. It can be found primarily in trenches below the ocean floor.
  • To put ocean depths into context, the bottom of the ocean is more than 2,000m greater than the peak of Mount Everest.

    What “Draining” the World’s Oceans Reveals

    For a long time, the ocean floor was believed to be less understood than the Moon.

    The sheer depth of water made it difficult to map without newer technology, and the tremendous pressure and extreme temperatures make navigation grueling. A manned vehicle reached the deepest known point of the Mariana Trench—the Challenger Deep—in 1960, almost 90 years after it was first charted in 1872.

    But over the last few decades, humanity’s understanding and exploration of the ocean floor has grown in leaps and bounds. O’Donoghue’s animation shows just how much detail we’ve been missing.

    The first easily noticeable characteristic is the Earth’s continental shelves, which appear quickly. Most are visible by 140 meters, though the Arctic and Antarctic shelves are far deeper.

    The animation then speeds up, as thousands of meters of depth reveal the tops of small mountain ridges and aquatic islands. From 2,000 to 3,000 meters, mid-ocean ridges appear that span the length of the Arctic, Pacific, and Indian oceans.

    From 3,000 to 6,000 meters of ocean drained, these aquatic mountains slowly give way to the vast majority of the ocean floor. Little changes over the final 5,000 meters except to illustrate just how deep the ocean’s trenches reach.

    Of course, technically the bottom of the Challenger deep is the deepest known point of the Mariana Trench. As satellite and imaging technology improves further, and aquatic mapping voyages become more possible, who knows what else we’ll discover beneath the waves.

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