Study of Security Market Role of Stock Exchange on Iranian Capital Market Development

Nowadays, many developed countries are looking for ways to increase their productions, tax incomes, control liquidity, decrease unemployment rate, and so on. These countries are trying to overcome all these problems to build a perfect economically developed society. One way to meet the above demands is making fair markets such as stock market; it is a kind of market which many companies wish to join and take advantages of it. Not all companies have the necessary conditions to join stock market; moreover it is not so useful for all of them to do so. Some companies prefer to Participate it on other markets out of stock market, called (Over The Counter). OTC enables them to get the necessary conditions to enter stock market, if they want to. In the other hand, OTC helps to have a more efficient application of capital markets. This is the issue that we tried to discuss in this paper.