A Comparative Study of the Tehran Stock Exchange and Other Stock Exchanges in the World and the Reasons for the Strengths and Weaknesses

This study aims at comparing Iran’s stock exchange with other stock exchanges in the world. It determines the rank of Iran’s exchange stock among other significant stock exchanges considering the efficiency, risk, the growth rate of the market value, liquidity index, and the role of the exchange stock in the national economy. It also shows the strengths and weaknesses of Iran’s stock exchange.
Financial markets in Iran are not involved in the international markets; hence, the financial crisis did not enter Iran. Since the economy of Iran depends on the revenue from oil, this revenue is the main channel for the financial crisis to enter Iran.
This study is a descriptive-survey study; its domain includes the members of the International Federation of Stock Exchanges; the simple sample selection method is used; data are collected from the websites of the International Federation of Stock Exchanges and Iran’s stock exchange; spss 19 and EViews softwares are used in order to analyze the data and the independent T test is applied to test the study hypotheses.
According to the results, the efficiency of Iran’s stock exchange is higher than those of other stock exchanges in the world; Iran’s stock exchange a lower role compared to the other famous stock exchanges in national economy; its risk is higher compared to the other famous stock exchanges in the world; there are significant differences between the growth rate of Iran’s stock market and those of other stock exchanges; Iran’s stock exchange has a lower liquidity index compared to the famous stock exchanges in the world.
This study shows that the world economic recovery and the recession in competitive markets are the main reasons of the growth of Iran’s stock index; the high risk of Iran’s securities is due to improper use of risk coverage policies and the high risk in Iran’s stock exchange is one of the most important reasons of the poor foreign investments in Iran; the principal weakness of Iran’s stock exchange is its small size and the fact that it is governmental.