Where of determination of stock fair value
is the most important function of stock market, so that
both parties of transaction be sure that don’t loss from
this transaction, in this way identifying of effective factors on
stock price can play the major role in developing of stock trades.
Identifying of effective factores on stock
prices help the trades to be done better , so the trading price
of stock nears to inherent price and it reduces the stock market crises
and intense flactuations of stock price .
In fact when stabilization of stock market is
gained that consistency in methods of stock pricing in capital
market should be observed , and it obtain only with application of
logical procedures in stock pricing .
In this survey , it has been tried to investigate
the performance of Tehran stock exchange during years 1370 _ 1379 (
1991 _ 2000 ) about the some effective factores on stock price ,
that is Earning per share ( EPS ) Dividend per share ( DPS) and growth
rate of company earning ( g )
In this way , correlation between stock
trading price and above mention factors has been studied , the
result shows some dificiencies in Tehran stock exchange .
The result from this research explain that
there was a significant relation between stock price and
earning per share in Tehran stock exchange during years 1370 _
1379 and between stock price and Dividend per share too , but
there wasn’t a significant relation between stock price and earning
growth rate of company