The relation study between Free Float with Downside Risk and Liquidity on Tehran Stock Exchange (TSE)

Subject Areas : Financial Knowledge of Securities Analysis

فروغ رستمیان ¹ , المیرا اسلامی برجلو ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2011-05-22 Accepted : 2012-02-20 Published : 2012-03-10

Keywords: Free float, Downside Risk, liquidity, Modern Portfolio Theory (MPT), Post – Modern Portfolio Theory,

Abstract :

The risk of investing in financial market is one of the investors' major concerns, asmarket participants, confronting any kind of bonds will ask about the risk level. on theother hand, liquidity as an effective element in risking rate and return is considerablyimportant on the stock exchange. Avoiding risk gets investors look for lower riskstocks with high liquidity to provide more financial security. According to studies andresearches, it sees that free float stocks rate can affect on liquidity and stocks risk.Therefore, regarding free float and their changes can be efficient in analyzing marketconditions and help investors make better decisions.The research is tried to study the relationship between Free Float with DownsideRisk and Liquidity on Tehran Stock Exchange (TSE).Considering the years 2004 to 2008, we had 233 companies to test theories. Weused Eviews and SPSS softwares to deal with the relationship between variablesduring 16 quarterly terms.The results confirm the significant relationship between Downside Risk andLiquidity with Free Float.