Role of Tehran Stock Exchange in Iran's Economy, Opportunities and Challenges ahead
Thursday, 23 December 2021 15:27 Iran's economy opportunities 572
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The IAIF held a specialized session on the role of Tehran Stock Exchange in the Iranian economy, opportunities and challenges ahead.

Ali Abbas Karimi, Vice President of Tehran Stock Exchange Research and Development Department, on 20 Dec. said in order to examine the functions of the stock market, I offer you that the economy of each country consists of two parts. First, the real sector, which includes the flow of goods, services and manpower. Second, the financial sector which includes the flow of funds, credits and capital which actually supports the real market.

He also added that the role of the financial sector in the economy is bigger than the issue of the stock market and the capital market, it is as follows:

1- Transferring funds between economic units is one of the most important functions of the financial sector of the economy. Especially in the field of capital markets, holders of surplus savings can transfer funds to the applicants of these funds.

2- Discovering (determining) the price of capital and funds

3- Disseminating and analyzing information

4- Facilitating trading which is done through active markets in the field of stock exchanges.

5. Risk sharing through the instruments used in this market, which is one of the functions of the financial market.

He pointed out that the role of the stock market in the economy is discussed, but the stock market as one of the segments of the capital market, facilitates the following roles:

Raising funds and directing them to finance those who are in need of financing, such as companies, governments, and public institutions such as municipalities, which in developed countries finance themselves through the stock exchange.

Optimal resource allocation

Increase in economic transparency and improvement in the business environment. It is one of the main activities of stock exchanges and they are the most transparent market among financial markets and all the information that is placed in the market is provided to all capital market practitioners at the same time and it makes the information of the country's economy transparent.

Facilitating foreign financing.

Equitable distribution of wealth through the expansion of public ownership. Stock exchanges can certainly help governments in the equitable distribution of wealth.

Evaluating the performance of industries and companies more appropriately.

Tehran Stock Exchange’s perspective is to become a world-class stock exchange by providing new financial services. Its mission is to create a comprehensive platform for the country's financial ecosystem so that other institutions can operate by the use of this platform. Finally the philosophy of Tehran Stock Exchange is to create and lead a fair, efficient and transparent market by providing innovative services and products in order to create added value for stakeholders.

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