Stock Market Turnover Ratio (Value Traded/Capitalization) for Islamic Republic of Iran

DDEM01IRA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

37.96

Year-over-Year Change

26.48%

Date Range

1/1/1975 - 1/1/2020

Summary

The Stock Market Turnover Ratio measures the liquidity of a country's stock market by comparing the total value of shares traded to the overall market capitalization. This provides insights into market activity and efficiency.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Stock Market Turnover Ratio is an important indicator of stock market development and liquidity. It shows how actively shares are traded relative to the overall size of the market, which can signal market efficiency and investor confidence.

Methodology

The data is calculated by the World Bank using reported stock market trading volumes and capitalization.

Historical Context

Policymakers and investors analyze this ratio to gauge the depth and functioning of a country's equity markets.

Key Facts

  • The ratio ranges from 0 to 1, with higher values indicating more active trading.
  • A high turnover ratio can signal a well-functioning, liquid stock market.
  • Low ratios may suggest limited trading activity or investor participation.

FAQs

Q: What does this economic trend measure?

A: The Stock Market Turnover Ratio measures the level of trading activity in a country's stock market relative to its overall market capitalization.

Q: Why is this trend relevant for users or analysts?

A: This ratio provides insights into the liquidity and efficiency of a stock market, which is important for investors, policymakers, and analysts assessing a country's financial development.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using reported stock market trading volumes and total market capitalization.

Q: How is this trend used in economic policy?

A: Policymakers and regulators monitor this ratio to gauge the health and functioning of a country's equity markets, which can inform policy decisions.

Q: Are there update delays or limitations?

A: The World Bank publishes this data annually, so there may be a lag in availability compared to real-time market information.

Related Trends

Citation

U.S. Federal Reserve, Stock Market Turnover Ratio (Value Traded/Capitalization) for Islamic Republic of Iran (DDEM01IRA156NWDB), retrieved from FRED.