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INVESTING THE RISK Of STOCK TRADINF ON THE TEHRAN STOCK EXCHANGE USING THE CRITERION Of LIQUIDITY

Author

Listed:
  • Efati, Farshid

    (PhD student of Economics in Firuzkooh, Islamic Azad University)

  • Naghdi, Yazdan

    (Assistant Professor of Tehran Gharb, Islamic Azad University)

  • Mahmoodzadeh, Mahmood

    (Associate Professor of Firouzkooh, Islamic Azad University)

  • Lashkarizadeh, Maryam

    (Assistant Professor of Tehran Gharb, Islamic Azad University)

Abstract

The purpose of this study is to estimate and calculate the liquidity of Tehran Stock Exchange in monthly intervals using a new method to be able to calculate and compare the liquidity of this market in different intervals with the least error. Liquidity of a stock means it is possible for a quick sale. In other word, whatever the shares could be sold faster and at lower costs, liquidity of shares is greater. So the study on liquidity has increased in recent years. In this study we estimated and compared the monthly stock liquidity in Tehran Stock Exchange. The results and liquidity calculation with excess return and Panel Data model by over 2 milions observation shows that from 1387 until the end of 1400 the liquidity level increased in the stock exchange, so that the least amount of liquidity is for the years 1388 and the highest liquidity amount is for the year 1398. According to our calculations, for every one billion rials buying in the market has been created about 0.01% of the excess return (additional cost). In other words, Due to the increased liquidity in the Tehran Stock Exchange, investment environment for investors has improved

Suggested Citation

  • Efati, Farshid & Naghdi, Yazdan & Mahmoodzadeh, Mahmood & Lashkarizadeh, Maryam, 2022. "INVESTING THE RISK Of STOCK TRADINF ON THE TEHRAN STOCK EXCHANGE USING THE CRITERION Of LIQUIDITY," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 9(2), pages 35-58, September.
    • Handle: RePEc:ris:qjatoe:0267
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    More about this item

    Keywords

    Liquidity; Stock Exchange; Return; Capital;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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