Dr. Khajeh Nasiri, CEO of Tamadon Investment Bank and a member of the Iranian Association of Islamic Finance said that we must keep in mind that the liquidity that has entered any market has fundamentally changed that market.

The entry of liquidity into the capital market is a great opportunity and if it is not well managed, will become a major threat to the country.

He stated it is very important and good to direct micro-capital to the stock exchange, provided that they are productive. If it does not happen, then not much work has been done. Without capital, our companies will not be able to produce and absorb workforce and so on.

Khajeh Nasiri pointed out ‌one of the most important factors in long-term financing is the issue of sharing risk and return, which means that if the investor is willing to share his activity’s return, he uses proprietary instruments, and on the contrary, if the investor is not willing to share his activity’s return, has to use debt instruments.

He stressed that there is a good amount of liquidity in the stock market and if a suitable platform is created, it can be turned into productive capital for companies, going on to say that currently, to attract liquidity in the capital market by companies and use it in their business cycle, there are three financing methods more efficient than others.

The first method is to take advantage of the opportunity for the initial public offering of new companies, which has grown significantly in the last two years according to statistics, and holdings can attract new capital to establish other companies and invest with the initial public offering of their own companies.

The second method is to sell surplus shares by holdings and use their income for new investments.

The third method is to increase the capital from spending shares, which seems to be the best method considering the current market situation and the situation of the holdings. In this way, the company takes away part of its shares from all shareholders and sells them to new shareholders.