What is the reason for the increase in the word stock exchange in the media?

Over the past few weeks, the frequency of the  word stock market has increased in the media , and there is not a day that the media and economic and financial experts do not talk about the stock market. Special news programs are organized and experts, familiar and unfamiliar, comment on it. These days, the stock market has become the key word for speeches by senior government and non-government officials. The desire to invest in the stock market increases and a new record is set every day.

Stock market

According to the  Gold Cafe , Hamidreza Dehghani, a capital market activist in the world of economics, has written: 2 million stock exchange codes have become 13 million stock exchange  activists  and the daily trading volume has increased from less than one thousand billion tomans to 10 to 20 thousand billion tomans daily.

The flow of liquidity has increased from 100 billion tomans to one thousand billion tomans daily, and multi-million toman shopping queues have become multi-billion toman shopping queues. The record of participants in the initial public offerings is also broken one after the other, so that in a few more mornings in the small company offering, the number of shares assigned to each person will not reach the number of fingers.

The stock exchange in Iran is an electronic, online and instant market for buying and selling shares of public joint stock companies. Like all markets, it has holidays and non-holidays, it opens and closes at certain times. It has loss-making companies and profitable companies. In most symbols, the buyer and seller of stocks are present. So far it seems simple, but it has countless complexities; At the same time, it is strongly influenced by political news, economic laws, global exchange rate fluctuations, inflation and rising exchange rates, the growth or decline in the rate of return on parallel investment markets, and, more recently, shareholder behavior.

The stock market is a market. Obviously, each market has its own rules and markets are subject to the behavior of marketers. The result is that the stock market, in addition to being influenced by political-economic components, is subject to the behavior of its activists. One of the main topics of economics is the supply-demand system. Every market and every commodity is subject to this principle, and the stock market, like other markets, is affected by these conditions. Of course, not every request is unreasonable, and behind every request is analysis and possibly special news.

Factors present in the stock market

In the past, the stock exchange operated with a limited number of shareholders. Headline was not one. It did not increase or decrease general inflation. This market, like other markets, is affected by general inflation. After the inflation of 1397, the number of stock exchange activists increased until the number of entries in the first two months of 1399 exceeded the total stock exchange codes of 1398.

During this period, some people wear the clothes of the stock market and blow the stock bubble every day. To better understand the issue, we divide the individuals and factors present in the stock market into four groups of stakeholders, spectators, experts and the general public. Obviously, recognizing and discovering the goals of these groups, while determining the trend ahead of the stock market, is the answer to the question.

A) Stakeholder group: includes government officials, capital market elements, major shareholders and initial owners of listed companies, real and legal shareholders.

A-1) Government officials and capital market elements who are the governing part of the stakeholder group support the stock market for the following reasons:

1. Prevent the entry of liquidity into unproductive and inflationary markets and facilitate the entry of stray liquidity (money and quasi-money) into productive and production-oriented markets.

۲. Providing a budget deficit of 50,000 billion tomans through generating, selling surplus property and theatrical privatization (privatization) and transferring state-owned companies while maintaining state ownership.

3. Preventive behavior of the central bank by changing the management style of new managers from passive to active and adopting various laws of fiscal and monetary policies, as well as foreign exchange management and export currency return, exchange rate, creating an interbank market, reducing deposit interest and removing four zeros from the national currency. Target inflation program.

4. The government's need for a stock exchange to finance the government by selling Islamic treasury bonds on the stock exchange.

5. Transfer program of companies and subsidiaries of public foundations, headquarters and financial and credit institutions and banks with the aim of leaving the business.

A.2) The initial owners of private companies, major shareholders, legal and real shareholders, and stockbrokers also form the public sector of the stakeholder group, which supports the stock market for a variety of reasons.

B) Exchange group of spectators and spectators: includes stock market participants and the remnants of recent stock market growth.

C) Group of experts and analysts: includes experts and prominent experts.

D) The common people :

This class is deprived of investing in the stock market due to lack of financial adequacy and lack of sufficient knowledge. Obviously, this deprivation ultimately leads to an increase in class distance, but this class gap is not accompanied by inflation and a decrease in purchasing power. This means that an increase in the stock market index has no inflationary effect on public living costs. In addition, if the inflow of liquidity into the stock market continues and this liquidity moves towards production, it will lead to an increase in employment and ultimately reduce unemployment and increase the level of public welfare.

To better understand the issue, look at rising prices and inflation in commodities after rising prices and exchange rates in the past. In fact, the increase in the exchange rate and the decrease in the strength of the national currency against foreign currencies are the mother of inflation in Iran. While the growth of the price of stock symbols and the increase of the stock index will not have any effect on public market inflation.

Numerous benefits of stock market growth

Based on the above, the growth of the stock market has several benefits that policymakers have reached this conclusion in the last years of management. Time is lost, but today is better than tomorrow. Stock market dynamics cover the budget deficit and control inflation in parallel markets, reduce liquidity growth, reduce government ownership of the economy (relatively and minimally expected), and give private companies access to cheap resources to implement development plans and employment. And production is aided, national affiliation due to individual ownership of companies increases, national wealth is prevented from flowing out, and thousands of other benefits.

The only important point and alarm is for the people who have come to the stock market in the spring of the stock market, with all their capital and thirst, and in search of astronomical profits. These people should be careful that buying watermelon is not a wise purchase by shouting and advertising the watermelon seller. It may temporarily quench the thirst and be profitable for a few mornings, but they should know that buying any stock on the stock exchange, without checking and ensuring its value and discovering a fair price, will not benefit the buyer. Some stocks are predicting future growth. It is the buyer's responsibility to buy this watermelon, not the market or the government.

Attendance at the stock exchange is not a choice between two watermelons that depends on luck and gambling. It is up to you to choose the seedlings from the hundreds of seedlings and trees available; Choose a fruitless tree or fruitful seedling that will result in a little patience.