Paper Information

Journal:   BASSIRAT (IN MANAGEMENT)   SPRING 2010 , Volume 17 , Number 45; Page(s) 61 To 80.
 
Paper: 

EFFECT OF FREE FLOAT LLEVEL ON RANGE OF STOCK PRICE FLUCTUATIONS IN TEHRAN SECURITIES EXCHANGE CORPORATION AND REPRESENTING USEFUL TECHNICS IN THIS FIELD

 
 
Author(s):  ASGARI MOHAMMAD REZA, IRAN PAK MOHSEN
 
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Abstract: 
One of the main aims pursued by forming stock-exchange markets is to create a transparent and systematic mechanism for supply and demand in order to evaluate the financial assets. Real and transparent pricing of shares constitutes one of the foundations upon which decisions to invest in the stock market is based. One of the factors playing in this process is free float level of shares which could lead to an increase in the volume of trading and a reduction in inactive liquidity in the stock market. This study is primarily aimed at reaching conclusions which would contribute to making more informed decisions by investors and companies regarding offering their traded shares. This research falls under the category of library research. The independent and dependent variables are free float level of shares and price of company shares respectively. The hypotheses of the research investigate presence or absence of a positive co-relationship between these two variables. This study was conducted over a period of 4 years in Tehran Stock Exchange market. Having established the sampling criteria, respectively, 45 companies and 12 industries were selected to investigate the first and second hypotheses.
The results indicate that there is a meaningful positive co-relationship between free float level of shares and price fluctuation in share prices. In addition, such a relationship has been observed in various industries.
 
Keyword(s): STOCK EXCHANGE MARKET, FREE FLOAT, STOCK PRICE FLUCTUATION, LIQUIDITY
 
References: 
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