Relationship between Stock Index Cash Float and Respondents in Listed Companies in Tehran Stock Exchange

Field: Economics, Econometrics and Finance (Social Sciences)

The main aim in this research the relationship between the free float as an independend variable with the deal count, Size and number of transactions rial buyers as dependent variables is a subsidiary of the hypothesis of their results and the relationship between stock index cash floating in the subjects listed companies the stock exchange as the main theory is specified.In order, for each variable associated with the percentage free float of test regression and of information about 246 companies active in the stock market from beginning of 1384-1388.Research results positive relationship between expression level and the float variable is related sub-hypotheses and thus all two sub- hypotheses were confirmed. The results of this research indicate that the coefficient between the stock and liquidity free float direct positive relationship exist. Thus the main research hypotheses were confirmed. Statement of the problem It is almost one of the primary goals of ant logical investor in firms' stocks to recognize the stocks of less risky firms and the stocks of firms that have stocks that can be liquidated and surplus return can be realized through it. One of the effective factors on risk and return and liquidation of stocks in a company is the amount of floating stock in it. From long ago the scholars in capital market state that there has been a relationship between the amount of floating stock and some of the important variables of a stock such as return, risk, and liquidation. Free floating stock is a part of stocks in a firm that can be exchanged without any limitations. But the authorities in different bourses consider free floating stocks of any company as those that are involved in the exchanges more probably and it refers to a figure that can be calculated by subtracting stocks not capable of being exchanged from the total stocks of a firm. On the other hand, one of the effective factors in investment is liquidation capability. The less liquidation capability of a stock, the less attraction would be thought of that stock for the investors. Experimental evidences have shown that investors are looking for purchasing stocks with higher liquidation capability. Liquidation means the speed of changing the investments or assets into cash. Thus, in this research we have tried to study the relationship between the amount of floating stocks in firms enlisted in Tehran Stock Exchange and their stocks' liquidation regarding the importance of each of these variables. The importance of the issue Regarding the importance of the amount of floating stocks in stock return, stock price, capital absorption, … doing research about the free floating stock and its effects can be useful for authorities in Stock Exchanges and also for the investors in decision making and devising investment strategies and also for the CEOs and board members in firms in order to make decision about the amount of free floating stock. Regarding the importance of private sector in capital market and the reduction of ownership role of the government in stocks of bourse