Promoter plays an important role while we are selecting a company to invest in. Let's discuss everything in detail to understand promoters' role in a company.
A stock promoter is a person or company who assists in the raising of funds for a certain investing activity.
A person who has direct or indirect authority over the firm's affairs.
A person on whose advice or instructions the firm's Board of Directors is used to act.
Promoter is the one who think of a business concept. He determine whether the business is realistic then he organise the resources to turn the idea into a reality.
The promoters have a fiduciary responsibility to the firm they back & to the people they encourage to become shareholders.
There are 3 other types of promoters operates in the stock market.
Stock promoters are used in the penny share market. Inspirational testimonials offered for free via a website or newsletter are examples of promotional activities.
Certain government agencies, such as the ITA, which is part of the US Department of Commerce, help American businesses navigate overseas markets.
Customers might become unintentional promoters of a firm. If a client has a positive encounter with service, They may tell other potential customers or investors about it.
Promoter is a person or group which make a firm reputation better or worse as they are the ones who really know the real business concept of the firm.