Is the reaction of shareholders to increase the range of fluctuations / new change in favor of the stock market?
According to Tejarat News, the stock market fell until 9:30 today and stood in the range of 1.5 million units.
According to the new decision of the Exchange Organization, the range of stock exchange and OTC fluctuations reached positive and negative six percent from yesterday.
Various experts have talked about the positive impact of fluctuations on trading. These experts believe that increasing the range of stock market fluctuations will cover the green in the long run.
But another group of capital market experts and activists say the scope has no effect on the stock market and its transactions, and is only temporary housing.
The amplitude of the swing is good for the market
Abbas Ali Haqqani Nasab, an economist, tweeted: “By taking the first step in increasing the range of market fluctuations, we have been on the path to eliminating structural and regulatory corruption for many years. I wish it was done sooner and the scope was increased more, who should pay for not deciding so far? “It is proposed to add one percent next month.”
Ali Saadvandi, an economist, also wrote on Twitter: “Thanks for increasing the range of fluctuations to positive and negative 6% in the stock market and over-the-counter, the question arises that without removing the second catastrophe, the base volume will lock the buying and selling queues due to increase “Will the expected return on sectarian gambling deepen or will this problem of subversive women be cured?”
“Any decision that destroys the queue in the stock market is a good decision!” Wrote Elias Kurdi, a capital market expert, on Twitter.
Hashem Ardem, a financial market activist, wrote: “Although the action of the stock exchange and OTC to increase the range of fluctuations in the first market is commendable, but it was better to apply this change in the whole market. “Let no inference be formed from the idea that the organization and its elements intend to signal the market and infringe on the rights of the shareholders of the companies present in other boards.”
Escape to the front of the stock market
Capital market participants are protesting against the volatility range, and a user wrote: “A one percent increase in the volatility range will apply to some stock exchanges tomorrow. An escape in vain and away from justice and without thinking of consequences. “What does fluctuation mean at this level of public awareness and information systems?”
“There is no such thing as a fluctuation range in the deep capital markets of the world!” But in shallow markets there is a range of fluctuations, marketers and portfolios! “Gradual increase in volatility also requires infrastructure, platform and training! Beginners should enter the market indirectly.”
“In my opinion, eliminating the fluctuation range in the Iranian stock market is not just a slogan, it is not practical and it is not useful. True, global markets are without a range, but the volume and value of transactions are so high that the effect of various variables is involved and the real price is discovered. “Suppose a stock market symbol grows 300 percent in one day.”
According to experts and stock market activists, it seems that the impact of increasing the amplitude of fluctuations requires time and training.
What is the amplitude of the oscillation?
The amplitude of the fluctuation reduces the excitement caused by the price and lowers the risk, and also helps a lot of inexperienced stock traders. This phenomenon not only raises confidence for this group of people, but also the price change occurs only in certain intervals and consequently heavy losses will be prevented.
The volatility range does not play a role in the transfer of dividends after the annual meeting. Therefore, the share profit can sometimes have an upward or downward trend compared to the fluctuation range.