Business And Markets

SEO Approves Measures to Shore Up Bourse

SEO Approves Measures to Shore Up Bourse
SEO Approves Measures to Shore Up Bourse

The Securities and Exchange Organization’s board members convened the first session presided by the newly-appointed CEO Mohammad Ali Dehqan-Dehnavi to help reinforce the collapsing stock market. 
Among the measures approved by the stock market regulator to boost the demand side was a decision to allow the Capital Market Stabilization Fund, a fund created to help resolve the credit crunch in the bourse, to issue put options worth 30 trillion rials ($125 million). 
The measure is in line with efforts to prevent the further depreciation of stock prices, particularly in blue chips, Securities and Exchange News Agency reported.  
A put option is a financial market derivative instrument that gives the holder the right to sell an asset at a specified price (the strike) by a specified date. Put options are most commonly used to protect against a fall in the price of a stock below a specified price. 


Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment