Tehran Stock Exchange

  • July 20, 2021

What is the Tehran Stock Exchange?

Before answering the question, what is the Tehran Stock Exchange? Or what is the stock exchange? We are dealing with the fact that securities are any type of paper or document that guarantees financial rights that can be offered to its owner. In other words, Tehran Stock Exchange is a type of financial instrument with transferability that can be of any type such as ordinary shares, preferred stock, pre-emptive rights, bonus shares, bonds, derivatives, options, and futures. In the capital market, these securities are divided into three general categories: debt securities, equity securities and derivatives. You should know that the admission and trading of securities on the Tehran Stock Exchange is done in three forms: stock cash market and tradable funds on the stock exchange, debt market and derivative market.

Now, if we want to talk about the Tehran Stock Exchange, it is an organized and self-regulated market in which securities are traded by brokers or traders according to the Securities Market Law of the Islamic Republic of Iran.

A brief history of the Tehran Stock Exchange

Tehran Stock Exchange was established in February 1967 based on the law approved in May 1966, and the establishment of the Tehran Stock Exchange in 2005 was provided from trust funds with the Tehran Stock Exchange Brokers Organization. Today, this market is managed in the form of limited liability companies or public limited companies in which the shares of companies and participation bonds are traded. An important feature of this market is the legal protection of owners of savings or stagnant capital. I suggest you read the Iran land of investment article. The period of operation of the stock exchange can be divided into four periods:

• The first period 1967 to 1978

• The second period from 1979 to 1988

• The third period from 1989 to 2004

• The fourth period from 2005 until now

Types of stock market in Iran

In Iran, the stock market can be generally divided into the following four categories:

  • Tehran Stock Exchange
  • OTC market
  • Commodity exchange market
  • Energy Exchange Market

Each of the listed stock markets in the above 4 categories has its own company and activities, but all operate under the supervision of the Tehran Stock Exchange.

1. Tehran Stock Exchange

One of the types of stock exchanges in Iran is the Tehran Stock Exchange. This stock market is an official market and sells itself for buying and selling stocks in Iran, which applies its stocks in terms of control and regulations, and sets its price according to the law. Tehran Stock Exchange officially started operating on February 6, 1964 with shares of Sanat va Ma’dan bank and  Pars Oil

2.OTC Market

OTC market is another type of stock market that divides itself into the first market, second market, base market, and third market. OTC is a market in which companies of commercial companies that have not entered the Tehran Stock Exchange, have been made to buy and sell. In fact, the rules for registering a company on the OTC market are easier compared to the stock market. OTC in Iran has been working since 2009 and its duty is an organizational organization that does not yet have the conditions to enter the stock market.

3. Commodity exchange market

The third category of stock exchange market is the commodity exchange market, which, as its name suggests, in this market, stocks of various commodities are traded. Over-the-counter commodities such as cotton, wheat, saffron, etc. are usually traded on the OTC market, so that after the sellers offer the goods, the goods are priced by experts and finally offered to the buyers. The OTC market is suitable for those who want to avoid false price fluctuations

4. Energy Exchange Market

The latest type of stock exchange market in Iran is the energy exchange. In the energy exchange market, energy carriers and securities based on them are traded. Oil, gas, and electricity are among the energy carriers. Energy exchanges are divided into two categories: physically active and derivatives markets. In the physical market, commodities are traded, but in the derivative market, commodity-based securities are traded. Of course, it should be noted that real customers can not buy in the physical market and can only buy securities in the derivatives market.

At the end , we had a brief look at the Tehran Stock Exchange and got acquainted with it. It is true that investing in this stock market is associated with little risk, but a good profit is achieved when you specialize in this market, where TEX analysts prepare the best investment portfolio for you.

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