DEFINITION of 'Press Release'

A press release is a piece of news companies send out to inform the public about something noteworthy. Financial services companies send these out to announce a new product, quarterly earnings report, or any other material news.

For example, an earnings release will highlight key financial metrics for the recently completed quarter and commentary from management. That includes headline revenue and earnings per share (EPS) number plus growth from the previous year and quarter. In addition to financial figures, press releases list valuable contact information that can assist investors in their research, like the company's web address, and contact and address information.

BREAKING DOWN 'Press Release'

A press release is produced by the company, not reporters or journalists, so it takes a subjective interpretation of the announcement. These days, it is difficult to distinguish between a press release and story published by a news publication. The best way to identify the source is by looking at the first few words of the piece. This will clarify the company or origin of the piece.

The two biggest publishers of press coverage are Business Wire and PR Newswire. BusinessWire is a global leader in press release distribution and regulatory disclosure. Public and investor relation professionals rely on the service to deliver their news to target audiences and trusted sources.

On average, the company publishes between 500 and 1000 releases per day across various sectors. PR Newswire effectively offers similar solutions. This includes a diverse collection of communication tools tailored for investor relations (IR), company news, press releases and disclosure requirements. Some areas of interest include investment vehicles, accounting and compliance, regulatory news, earnings and dividends, and the banking industry. This spans financial services, science and technology, and public policy.

Pros and Cons of Using a Press Release

Writing a press release is a great way to create buzz around products, partnerships or any noteworthy news. It nudges journalists and reporters to cover the story and build trust with a growing audience. The ultimate goal for companies in issuing a press release is to gain instant exposure, build trust with existing and prospective customers, and increase traffic to their website or stores. The benefits of press releases are clear but some limitations still remain. As a marketing tool, press releases alone can't support a marketing strategy. They are limited in reach and can come across as insincere or shallow. Companies produce the press release to showcase the good without any mention of the bad.

RELATED TERMS
  1. Public Relations (PR)

    Public relations is the art of managing how information about ...
  2. Construction Interest Expense

    Construction interest expense is interest that accumulates on ...
  3. Material News

    News released by a company that might affect the value of its ...
  4. Close Period

    The close period is the time between the completion of a listed ...
  5. News Trader

    A news trader is a trader or investor who makes decisions based ...
  6. Regulation Fair Disclosure - Reg ...

    Regulation Fair Disclosure is a rule to prevent selective disclosure ...
Related Articles
  1. Investing

    The Flow of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  2. Investing

    Tips for when to buy, sell or hold

    Knowing how to make sound snap decisions is a must for any broker. Should you buy, sell or hold that stock? Here are some tips to help you make that decision.
  3. Small Business

    9 Tips For Getting Free Publicity For Your Business

    Branding and publicity are extremely important for small businesses. We look at some helpful hints and tricks for entrepreneurs.
  4. Insights

    The Top Sites for the Latest Stock Market News

    News drives the markets for short term price movements. Which websites offer timely, accurate and reliable access to news for trading and investments?
  5. Insights

    Markets Await Trump Press Conference

    Investors wait to see if Trump steers toward protectionism at his first press conference in six months. Also on the agenda: Russia.
  6. Financial Advisor

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  7. Financial Advisor

    Should You Put Your Faith In A Trust?

    Many institutions want a piece of your portfolio, but trusts can provide a one-stop shop.
  8. Investing

    6 Things To Look For In Earnings Reports

    Learn how to consider all the known variables when assessing a company's health.
  9. Investing

    What Would Full Disclosure Mean For The Market?

    More investors and the media are calling for the full disclosure of company financials following several high-profile accounting scandals in recent years.
RELATED FAQS
  1. Why would my stock's value decline despite good news being released?

    There are many possible explanations for a stock's value declining despite good news being released. Investors should remain ... Read Answer >>
  2. What does "going public" mean?

    Going public refers to a private company's initial public offering (IPO), thus becoming a publicly traded and owned entity. ... Read Answer >>
Hot Definitions
  1. Futures Contract

    An agreement to buy or sell the underlying commodity or asset at a specific price at a future date.
  2. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  3. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  4. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  5. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  6. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
Trading Center