The Tehran Stock Exchange (TSE), established in 1967, is the largest stock exchange in Iran. It is located in Tehran, the capital city of the country. The TSE serves as the primary platform for the trading of equities, bonds, and other financial instruments in Iran. It plays a crucial role in the Iranian economy by providing a marketplace for domestic companies to raise capital through the issuance of shares and debt securities, as well as offering investors the opportunity to invest in these securities.
The Tehran Stock Exchange is regulated by the Securities and Exchange Organization (SEO), which is responsible for overseeing and ensuring the fair, transparent, and efficient functioning of the Iranian capital market.
The main index of the TSE is the Tehran Stock Exchange Price Index (TEPIX), which represents the overall performance of the stock market in Iran. The TEPIX is a market-capitalization-weighted index, which means that the weight of each stock in the index is determined by its market capitalization, or the total market value of its outstanding shares. The index serves as a benchmark for investors and financial professionals to assess the performance of the Iranian stock market and compare their investment returns against the broader market.
Trading on the Tehran Stock Exchange is conducted electronically through an automated trading system, which allows for the efficient and transparent execution of buy and sell orders. Investors can access the TSE and trade securities listed on the exchange through brokerage firms that are licensed and regulated by the SEO.
It is important to note that Iran's financial markets, including the Tehran Stock Exchange, operate within a complex geopolitical and economic context due to various factors such as economic sanctions, currency fluctuations, and domestic economic challenges. These factors may influence the performance of the TSE and the overall stability of the Iranian economy, and investors should be aware of the potential risks and uncertainties associated with investing in Iranian securities.