The relationship between the amount of free float and liquidity of shares in Companies listed on the Tehran Stock Exchange
Subject Areas : Journal of Investment Knowledge
Mohammadreza
Monjazeb
1
(Faculty Member, Economic department, University of Economic Sciences, Tehran, Iran)
Sajjad
jalali
2
(Sajjad jalali
M.A. of Financial management , Faculty of Sciences Finance, University of Economic Sciences, Tehran, Iran, corresponding author)
Keywords: Free float, liquidity of stock trading vol, trading value, trading stock turnover, number of trades, number of days traded,
Abstract :
This study investigates the association of free float and liquidity of the stock. In addition to considering any reasonable investor in making an investment return and risk criteria should also consider liquidity to be able to determine the relationship between liquidity indicators (turnover, value of transactions, number of transactions, number of days of trading and turnover trading stock) Tehran Stock Exchange with a free float of 164 companies were investigated. For this purpose, trimester data were collected from the 1391- 1385 companies. Using the combined data (panel) regression models were estimated. The results showed that all of the free float and liquidity indicators, there is a significant relationship. Given the values of the estimated coefficients, in order of most to least about trading stock turnover, number of days traded, turnover, number of trades, the trades are free float variable.