RNS: a brief but informative guide on RNS
As someone new to investing, it may feel like there are endless reams of information to learn. It can seem overwhelming at times, but research, understanding, and knowledge are three of the most important resources you have at your disposal.
The RNS – short for the Regulatory News Service - is simply one more subject you must be knowledgeable about. In the article below, we’ll walk you through its function and relevance to your investment strategy and teach you everything you need to know about it.
What is the RNS?
Put simply, the RNS is a body tasked with sharing regulatory and non-regulatory information regarding businesses and publicly listed companies in the UK. One of the many arms that make up the London Stock Exchange, it disseminates content that ensures businesses are upholding their disclosure obligations.
The RNS’ foremost job is to publish useful details, such as share issues, additions or changes to a business’ board of directors, and company results. These are all factors that can influence share prices and stock market performance, so it’s important investors are kept abreast of this information.
Before the RNS, a similar body existed, known as the Company News Service. However, this was made obsolete in 1988 when it was replaced by the Regulatory News Service.
Today, the RNS is internationally acclaimed as a reliable provider of stock market news. Used by investors around the world, its output is featured on more than two million financial resources platforms, from websites to professional terminals and databases.
Its primary role is to aid investors like you in making informed decisions about UK companies and ensure the financial markets remain transparent and information is equally accessible to all.
Why the RNS is important to investors
As we alluded to above, the RNS is an essential resource for investors, irrespective of skill level or experience. It delivers the sort of market insights that enable you to make well-thought-out decisions that take any relevant information into account.
Using it provides numerous benefits - most importantly, by allowing you to devise more informed strategies regarding shares and other areas. That’s because it puts you on more of an equal footing with those whose fingers are already on the pulse – and arguably allows you to develop your skillset and become one of this exalted number. Most importantly, the RNS ensures you have access to accurate, reliable, and up-to-date information whenever you need it.
When traders need the RNS
With so many instruments and markets to trade, many investors make trading decisions around the clock. Luckily, the Regulatory News Service is on hand any time you need it.
Operating 24 hours a day, seven days a week, it puts out company news and information as and when it’s released, so you always have access to the most contemporary numbers and data.
How the RNS influences the market
Defining the impact of the RNS upon the markets is difficult. It’s a reactive publication, sharing information as it’s received. This means that while it doesn’t actively influence traders and seeks to minimise bias, its releases do affect investor sentiment and actions.
Earlier in this article, we explained the sorts of news the RNS publishes.
- Primarily, it reports on factors that are likely to influence share prices and stock market performance, such as share issues, changes to boards of directors, and company results.
- All of this information is required for investors to make informed decisions. Ergo, while the RNS will never seek to influence you or tell you what to do, many are influenced by it. For example, if a report suggests a UK 100 company’s performance has dropped, this may cause investors to sell their shares as a direct result.
Tips and tricks to get the latest information for investors
Staying abreast of the latest news and happenings is vital to any successful investment strategy. This applies whether you’re using your platform to trade forex or experiment with the stock markets. Where you’ll find this information will vary depending on what you’re trading. In the case of the RNS, this primarily publishes the sort of information that’s useful to those who have or are looking to purchase shares or to invest in shares CFDs. Many platforms directly publish the RNS' output, so you have instant and immediate access to it. There are also several websites dedicated to disseminating this information, with the London Stock Exchange site being one of the best places to check. For this reason, we recommend adding it to your favourites and keeping an eye on it throughout the day.
Next steps/additional resources
Now you understand the purpose and utility of the RNS, you’ll know how important it is to take advantage of this invaluable resource. However, your education doesn’t stop there. For fledgling traders, there’s yet more to learn. We’ve listed a few of the resources we think you’ll find most useful below:
- Understanding risk. Struggling to assess the degree of risk inherent in your trade? Then check out this handy article to learn more.
- Try a demo account. Another way to get to grips with trading is to trial a no-risk demo account.
- Get the latest market information. Want the latest market information collated and brought to you? Then check it out here.
- Understand your style of trading. Not yet sure what your personal trading style is? Take a look at this handy guide to help you identify and refine it. When it comes to the investment markets, knowledge is power. Use our extensive resources to hone your understanding and make your strategy the most successful it can be.
Not investment advice.
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