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Companies listed on the various stock exchanges have long held analyst conferences to spread their message to the investment community. To accommodate those who couldn’t travel, the conference call allowed hundreds of analysts to hear a presentation and ask questions in real time. But access was usually restricted to investment professionals and often involved long-distance toll charges.
A Typical Conference Call Scenario
At the stroke of 4 P.M. in one of the world’s business cities a group of company executives from across the globe sit down at their own desks, pick up their phones and stare fixedly at their computer screens.
To the untutored eye, they will not be doing much. But, as always, appearances are deceptive.
These executives are actually taking part in a single meeting – an online Conference Call brought straight to their offices via the Internet.
Over the next 1-2 hours, the participants sitting in Tokyo, London and New York will hear the latest corporate news. They will read reports and study financial data sent straight through to their desktops. If anyone has any comment to make they will be able to butt in over the phone line to make their point.
And by the time it is all over, they will have become the latest collection of managers to have discovered the joys of web conference calls or conferencing.
The Internet now provides a much more practical venue for the conference call. With its low cost and ability to accommodate many listeners it is now practical to open a conference call to almost anyone. Many firms now do.
Using the Internet has many advantages besides the instantaneous international release that results. It is possible to save the audio files so that the call can be accessed later at a more convenient time. Plus it would be possible to edit out meaningless portions of each conference. Naturally, there are some limitations. If everyone could ask a question, real brawls could result as the conferences became uncontrolled. So most Internet systems limit who can ask a question.
An outstanding advantage of conferencing for the average investor is to witness directly a firm's management in action. While the information might be the same, an investor gains confidence in management that presents a virtuoso performance over one that is defensive, hesitant, and secretive.
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