What Is Corporate Access and How Does It Affect Trading Operations?

If you were a celebrity's handler, then you would be primarily concerned with access. Who gets to talk to your charge when, where and for how long. Access control is an issue in business too, and when it comes to the investing field the question of corporate access is one that has to be answered. Corporate access is similar to the above example, but it consists of meetings between the managers of a corporation that's traded publicly with those who are institutional investors. Essentially it's the people running the company who are meeting with the people which are considering putting a lot of money into the company.

Now, there are several issues when discussing this form of access. For instance, some people estimate that this access accounts for as much as 20% of the bonuses paid to the middlemen, those who put investors in touch with companies to invest in. This issue has created accusations of unfairness, since bigger companies with bigger accounts and better connections can earn more money because they can introduce clients to corporations, while smaller, independent firms lack this same access. But that argument is only one of many that can affect how trading operations work when it comes to getting access.

Once access has been granted though, it makes for a powerful addition to the other research that might be conducted by private companies on behalf of investors. After all, you can get all the facts about a company, but nothing quite brings it home like being able to evaluate the management personally, talking to them and getting a sense of the men and women that are really running a company. In fact, the impression made by the management can be a major, deciding factor in whether or not that particular company is the one that gets money given to them at all.

However, it is important to remember that access is only one aspect to the process of making a decision for trading operations. While it is good to be able to talk with the people who are running a company you're considering investing in, it's not substitute for solid numbers and good prospects in future gains. However, if a company has both of these things going for it, then the chances of it getting more investors is even better. Access to the corporate heads though is something that every company needs to decide for on its own.