Bulk Deals of Stocks in Tehran Stock Exchange and Iran Farabourse Company

Deals of stocks in our securities market are divided into retail, block and bulk deals. In block and bulk deals, larger and sizeable quantities of stocks are exchanged between two parties to the contract. In these types of deals, stock price is usually higher than retail deals. In addition, trade and settlement mechanisms are different. Bulk deals are divided into regular and conditional in terms of the time of price settlement. Both regular and conditional bulk deals have in common concerning the process of offering potential buyers the purchase of stocks; however, conditional bulk deals are accomplished in a different manner. In regular bulk deals, exchange of considerations is carried out in 3 days, but in conditional bulk deals, while stocks are transferred as the deal is concluded, a part of the price is paid subsequently out of Tehran Stock Exchange (TSE) or Farabourse mechanism. Therefore, this study examines the bulk deals of stocks in Tehran Stock Exchange and Iran Farabourse Company by illustrating similarities and differences between rules governing the bulk deals in these two markets.