Investigating the existence of magnet effect caused by price limit volatility and the role of institutional investors on it

Stock price limit range is one of the tools that used to control the market participants sentiments and major changes in stock prices. Apply the above procedure can also reduce the market sentiment and the loss of shareholders, also has consequences such as changing the behavior of stock market actors and magnet effect. In this research, we investigate the magnet effect in ten sample companies that mention in the research for the year ended 1395. The research data are intraday and include 5- minute time series of prices traded in the Tehran stock exchange. Also in this research, the role of institutional investors on the magnet effect has been measured. The results of the research indicate that the magnet effect in some companies have approved but only in one of the companies whose magnet effect has been confirmed the institutional investors transaction caused it, and in other companies there has been a magnet effect caused by the individual investor.