There are more than 5,000 publicly traded companies on the NYSE and the NASDAQ and more being added with each IPO. Everyone of these companies is required to report to the SEC and to tell its story to the investing public. Skilled financial communicators are in high demand. The key question? How does a company make money?
3. Not So Fast…
• 74 percent of CEOs want graduates with a
liberal arts education
• Who can effectively communicate through
persuasive writing and presentations
• And Solve Problems
Source: Association of American Colleges and Universities Survey of 320 CEOs
4. America’s New Investor Class
• 54 percent of Americans own stocks, mutual funds and
bonds; 73 percent college graduates; 83 percent post
grads
• Internet Trading Tools; IRAs, 401Ks
• Longer life spans; higher health care costs; college
tuition
6. 24-Hour Financial News
• Wall Street Journal, Financial Times, Investor’s Business
Daily
• Fortune, Forbes, Business Week, Barron's
• CNBC, Fox Business, Bloomberg TV
• The “Money Honey” and “Mad Money”
• AP, Dow Jones, Reuters, Bloomberg, TheStreet.com
• Bloggers, Social Media and Chat rooms
• PR Newswire, Business Wire, Internet Wire
7. Introducing the NYSE
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•
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•
NYSE – Founded 1817
“The Big Board”
$16.6 trillion Market Cap
2,308 listings
Venerable Companies
Ringing the Bell
Pounding the Gavel
8. Introducing the NASDAQ
• Founded in 1971
• “Electronic Exchange”
• $4.45 trillion market cap
• 2,709 listings
• National Association of Securities Dealers
Automated Quotations (NASDAQ)
9. SEC Disclosure Rules
• Annual Report to Shareholders (10-K)
• Quarterly Earnings Reports (10-Q)
• Major Unplanned Announcements (8-K)
– Upside / Downside Guidance Variations
– Mergers and Acquisitions
– Restructurings
• Annual Meeting of Shareholders
• Prospectus for Planned IPO (S-1)
11. Quick Market Definitions
• GAAP: Generally Accepted Accounting
Principles
• EPS: Earnings Per Share
• IPO: Initial Public Offering
• Market Capitalization: Share price x
Number of Shares Outstanding = Value
• SEC: Securities Exchange Commission
12. Preferences and Choices
• Non-Profit Communications: $62,275
,
• Corporate Public Relations: $88,823
13. Preferences and Choices II
• Community Relations: $63,437
• Financial Communications: $117,233
14. Pay Rates for IR/PR Directors
• Investor Relations Director Range
$97,753 to $201,565
• Corporate Public Relations Director Range
$86,469 to $167,836
2013 Source: Salary.com
15. Asking the Obvious Question
“…Sometimes the most obvious question
really is the question. In Enron’s case: How
do you make money?” – Bethany McLean,
Fortune Magazine
32. Tale of Two IPOs
Connections
• 200 million subscribers
• $25.7 billion Market Cap
• $972 million revenues
• $21 million profits
• Debuted at $45
• Now $215.21
Friends
• 1 billion+ subscribers
• $158.9 billion Market Cap
• $5.0 billion revenues
• $32 million profits
• Debuted at $38
• Now $62.57
33. Q1 Financial Statement
Wildcat.com (?: CWU)
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•
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Revenues: $2 million
COGS: $1 million
Gross Margin: $1 million
SG&A: $250,000
R&D: $250,000
Operating Margin: $500,000
Taxes: $200,000
Net Income (Loss): $300,000
34. Q1 Financial Statement
Wildcat.com (NYSE: CWU)
•
•
•
•
•
•
•
•
Revenues: $2 million
COGS: $1 million
Gross Margin: $1 million
SG&A: $250,000
R&D: $250,000
Operating Margin: $500,000
Taxes: $200,000
Net Income (Loss): $300,000
35. Q1 Financial Statement
Wildcat.com (NYSE: CWU)
•
•
•
•
•
•
•
•
Revenues: $2 million
COGS: $1 million
Gross Margin: $1 million
SG&A: $250,000
R&D: $250,000
Operating Margin: $500,000
Taxes: $200,000
Net Income (Loss): $300,000