Executives are turning to new methods, such as tools that analyze reams of data and social-media platforms, to determine just who their small investors are and how to reach them, while also using traditional approaches like shareholder letters and meetings. But with individual investors growing in number and scattered across the country or even the world, connecting with them can be much more difficult than communicating with institutional investors.
“Many retail investors have smartened up,” said Kimberly Esterkin, managing director at Addo Investor Relations and president of the National Investor Relations Institute in Los Angeles. “We are seeing a broadening of the types of investments they make.”