Iran Fara Bourse (IFB) on Sunday unveiled three new indices to help investors and analysts get a better grasp of the market, the CEO said.
"Three new indices, namely price index, equal-weighted indices and price weighted index, have been added to IFB market data at tsetmc.com as of Sunday," Mohammad Ali Shirazi was quoted as saying by SENA.
“So far we had one index for IFB. With the help of the new indices investors will be able to better explore and analyze the market. New indices, especially weighted indices, were seen as a need to help address issues created due to variety in the market value of some companies and market concentration,” Shirazi said.
An equal-weighted index is a stock market index – comprising a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company's stock carries equal importance in determining the total value of the index.
A total price-weighted index is a stock index in which each company included in the index makes up a fraction of the total index proportional to that company's share stock price per share. In its simplest form, adding the price of each stock in the index and dividing by the total number of companies determines the index value.
Iran Fara Bourse is one of the four Iranian exchanges and operates under the supervision of the Securities and Exchange Organization (SEO), a member of IOSCO.
IFB was founded in November 2008 to assist companies wanting to join the capital market and enhance their corporate governance and business by providing easier listing requirements.
