NEW YORK, Nov. 16 /PRNewswire/ -- Internet-based news and financial web
sites outrank brokers, traditional media sources and even tips from family and
friends as the No. 1 source for investment information for individual
investors, according to a survey conducted by the National Association of
Investors Corporation (NAIC) and PR Newswire.
The survey of 622 individuals provides a glimpse into the makeup and
interests of the new crop of investor -- individuals managing their own
portfolios by conducting research on the Internet.
"The survey clearly shows that individual investors are a very focused
group who want to be able to research a company on the Internet with ease,"
said Michelle Savage, director of investor relations services for PR Newswire.
"They are very comfortable with the Internet and spend up to 10 hours a week
looking for financial information on the web. This information is key to
attracting new investors and keeping existing shareholders."
Internet-based news and financial web sites are the No. 1 source for
investment information for 95 percent of those polled, far ahead of stock
brokers, newspapers, magazines, family and friends. Business and financial
magazines came in second, followed by news releases issued by the company.
While 75 percent said corporate web sites are important sources of financial
information, more than 95 percent of the respondents did want to see breaking
news releases on corporate web sites. Seventy-four percent visit the corporate
web site before investing in a company, while 53.6 percent visit the site
several times before making the decision to invest.
Shareholders and prospective investors are looking for different
information on corporate sites, she continued. Industry comparisons and
financial data such as valuation ratios, annual reports, balance sheets and
income statements are important for the prospective investor to help make
investment decisions. The most important features for existing shareholders
are profiles of company ownership and timely news releases. While over
90 percent of the individual investors surveyed said that annual reports
should be available online, only slightly more than half said that as
shareholders they would be willing to accept financial documents
electronically. An official SEC statement called an "interpretive release" on
the use of electronic media for the dissemination of documents stated that
shareholders must consent in advance to the receipt of an electronic document
in lieu of the paper document.
The survey, fielded by Mediamark Research Inc. during a two-week period in
September, asked members of the NAIC how they use the Internet to research
investment opportunities and what useful information they need on corporate
web sites. The NAIC, http://www.better-investing.org, a non-profit
organization dedicated to investment education, has more than 750,000 members.
An increasing number of NAIC members are looking to the web as a source for
current investment information, following a national trend.
Robert A. O'Hara, vice president of business development for the NAIC,
said the survey with PR Newswire was an important step in determining the
relationship between companies and individual shareholders.
"Our corporate members and individual members will benefit greatly if
companies heed the requests for access to information online," he said. "The
Internet has revolutionized access to financial information, and our members
are taking advantage of it to make their own investment decisions."
According to other recent studies, four out of five investors say they now
access corporate information via the web and an estimated 7.2 million
investors trade online today. These individual investors are an increasingly
important group for companies, who are now able to reach them directly through
the Internet. Until the survey, however, largely little was known about what
the individual investor wanted on corporate web sites to help them make
decisions. This data can help companies better understand what type of
information they should post on their web sites.
"Individual investors are terrific for companies because we know they buy
stock and keep it, adding to the long-term valuation of stock," said Holly
Ash, director of investor relations for Goodyear. "But we haven't been sure
exactly who we are dealing with in such a broad audience."
According to the PR Newswire-NAIC survey, investors are also interested in
having information sent to them via e-mail at their request. More than
85 percent would like financial data and 78 percent would like to have news
releases sent to their e-mail addresses through automated "push" e-mail
systems on web sites.
Half of the investors have participated in online financial trading, with
over 25 percent having used the Internet for online banking. Using the
Internet for personal finance was the key reason for logging on for
51.4 percent, but another 65.4 percent use the Internet "most of the time" to
search for specific investment information.
"Individual investors want to research financial information and identify
potential investments from aggregated news sources, and they use corporate web
sites to conduct in-depth analysis before making their decisions," Savage
said. "These survey results have helped us to realize that our service for
companies to provide this information has hit the mark, and they will help us
to refine the service going forward."
PR Newswire created the service called vIRtual IQ to assist companies in
building complete investor relations web sites to ensure that stakeholders and
potential investors have access to all of the information they need. The web
site, created and also fully maintained by PR Newswire, includes current and
historical company information as well as fresh content from Reuters and other
prestigious data providers.
NAIC is a non-profit, investment education organization based in Madison
Heights, Mich. Since its founding in 1951, NAIC has provided more than five
million investors with the tools and education to become successful, lifetime
investors. NAIC's current membership is comprised of individual investors as
well as investment clubs. The investment clubs serve as a means for investors
to pool their money and knowledge in making investment decisions. The
knowledge they gain from their investment club research is also used to build
their own personal portfolio. NAIC members invest regularly, adding
$50 million of new money to the stock market each month. By following NAIC's
long-term investment philosophy, millions of people have made their life
better and more secure for the future.
PR Newswire is the world leader in the electronic delivery of information
directly from companies, institutions and agencies through its cutting-edge
wire, fax, satellite, e-mail and Internet network. Forty-five years after
founding the industry, it has 35 bureaus worldwide, an exclusive partnership
with Canada NewsWire and a vast international affiliate system. PR Newswire
provides a broad complement of services for public relations and investor
relations professionals to reach the media, financial community and consumers.
For more information, please contact: Renu K. Aldrich, PR Newswire, Public
Relations Manager, Renu_Aldrich@prnewswire.com; Michelle Savage, PR Newswire,
Director of Investor Relations Services, Michelle_Savage@prnewswire.com; or
Martha Stephens, NAIC, Director of Corporate Services,
stephens@better-investing.org.
SOURCE PR Newswire
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Related links:
http://www.prnewswire.com
CONTACT:
Renu K. Aldrich, Public Relations Manager,
212-282-1929, 800-503-2654 (pager), Renu_Aldrich@prnewswire.com,
or Michelle Savage, Director of Investor Relations Services,
212-596-1526, Michelle_Savage@prnewswire.com, both of PR
Newswire; or Martha Stephens, Director of Corporate Services, of
NAIC, 248-583-6242, ext. 304, or stephens@better-investing.org
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