Which of the following is NOT recommended for public company communication with investors?

Prepare for the NACD Certification Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to aid your understanding. Ensure you are fully ready for your test!

The correct answer is the option that highlights a communication approach that is not recommended for public companies. Effective investor communication is critical for building trust and maintaining a positive relationship with stakeholders. Regular updates on business performance and proactive engagement with investors are essential practices that help keep investors informed and engaged with the company's strategy and progress.

Addressing potential future crises is also vital, as it demonstrates that the company is prepared and proactive in its risk management. This kind of transparency can enhance investor confidence and foster a more resilient relationship.

Contrasting this, avoiding engagement until a crisis arises reflects a reactive rather than proactive strategy. This approach can lead to a lack of trust and may result in negative consequences for the company’s reputation. Investors generally prefer a transparent communication strategy that anticipates their needs and provides consistent updates, rather than waiting for a crisis to prompt communication. Engaging with investors regularly, even in stable times, can mitigate misinformation and better prepare them for any challenges that may arise.

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