Comparison between trading entities and groups in the incidence of magnetic effect on the range at Tehran Stock Exchange

Subject Areas : Financial Knowledge of Securities Analysis

Meysam Alimohammadi ¹ , Ali Rostami ² , M. Feyz Fallah Shams ³

1 - MA in Financial Management – Kharazmi University
2 - Faculty member of Payam Noor University
3 - Faculty member of Islamic Azad University of Tehran Branch

Received: 2014-07-03 Accepted : 2014-10-12 Published : 2015-10-02

Keywords: price limit, magnetic effect, Institutional trading, Buyers group, Tehran Stock Exchange,

Abstract :

In most of the world's capital markets shows that they exercise volatility range in order to achieve goals such as preventing price(the means of volatility is sharp change) manipulation and reducing market turbulence and emotions.Allowable fluctuation range of actions have effects, some of which are beneficial and some are harmful. Allowable volatility range is the price range of a share in a workday; this means that the share’s changes in that day cannot exceed or become less than this limit. Therefore this range reduces market manipultion and emotions.Beside varied advantages of exercising volatility range, there are some disadvantages and researches have been done that some allege efficiency and some allege inefficiency of this phenomenon.In this study, the type of cross - correlation is based on time series data, which are 10 companies listed in Tehran Stock Exchange for the fiscal year 1391 have been selected. The method of sampling is Through screening and Convenient. To test this correlation and linear regression was used to model time series.Results show that between the examined corporations(Ceramic and tiles of Sinai, Iran Transfo, Industry of Azarab, kalsimin, The steel of Esfahan Mobarake, The Suger of Shahrod, Development of Mines and Metals, zamyad, The suger of Lorestan, The Suger of Piranshahr) 1 corporatin (gheshekar) In all companies, the role of institutional investors in incidence due to more attractive investment group. Chosen because these companies, for example, high volatility, higher trading volume during the period of investigation and that more time was open stock symbol.

References:

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