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HOSEIN KHOZOOEE

 

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Thesis Code:

M. 242

Author (s):

HOSEIN KHOZOOEE

Title:

Revieing the Islamic jurisprudence Concernin So called Market making Methods in the Tehran Stock Exchange (Time Period : 1380-1383)

Supervisor (s):

REZA TEHRANH

Advisor (s):

YAQUB ALI BORJI

Thesis:

M. A. Management

Date of Print:

WINTER 2007

University:

IMAM SADIQ (AS)

College:

Islamic Studies and Management

Abstract:

The price of the stock are determined by the law of supply & demand . Sometimes because of various  reasons supply and demand of stock increases or decreases . This imbalanced situation may have an input on the decision of the other stock holders and might cause them to join the buyers or sellers of the stock . In most developed and advanced stock markets of the other countries some kind of institutions which are called market makers have been established in order prevent to stock market from intense fluctuations and to stop the imbalance  of the market . These market makings by buying and selling stocks at times of high supply and demand prevent unwise pricing of  the stock and therefore shall keep the price  of the stock in an acceptable manner ( fair value ) , so that the stock could still be liquid and its transactions could  continue .

 

In our country, (IRAN), although the age of stock market goes back to several decades , the lack of law and also unsuitable infrastructure of the stock market has let some of the active stock holder  function in an unwritten manner ( so called market making) . These methods not only prove  functional outputs of the market making , they may also be in contradiction with our Islamic laws and regulations ( Islamic jurisprudence ) and may be considered as fraud or unjust practice .This article shall focus on introducing so called techniques of market making in  Iran stock market and also would study them from our religus standards and Islamic jurisprudence .

 

Key Words

 stock exchange , market making , fraud

Updated  Sep. 2012

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