A survey of the relationship between stock price volatility and a variety of companies on the stock exchange (Case study: The companies listed on Tehran Stock Exchange)

Abstract

Stock pricing is one of the most important and yet most complex operational procedures in each stock exchange market. In financial markets, the pricing of tradable assets plays a fundamental role in resource allocation. After initial pricing of stock of companies listed on TSE, we can observe the changes of prices with determined values by stock exchange market. One of the adverse effects of capital market is the stock price fluctuations. The purpose of this study is the evaluation of the relationship between stock prices volatility variety of companies in stock market. The study population is all firms listed on Tehran Stock Exchange during2008to2013 in TSE. Based on a stratified random sampling, each industry is selected as a class and by each class, by Cochran’s formula, n=, the sample size is 40 firms. Then by using a simple random sampling, 40 companies are selected based on a table of random numbers. This study is a descriptive –analytic design using cointegration econometric test and Fisher's exact test. The statistic tests analysis shows that there is no relationship between stock price fluctuations and the Companies type.