A study the relationship between the situation of the

Generally, in Initial Public Offering (IPO) the stock of a company is priced lower than its real value (under pricing), therefore an abnormal return would be unavoidable. In this research a new model is presented to study the relationship between the return of this kind of stock and the market situation in the case of being hot or cold. Also the model examines the behavior of IPO stock in recession and recovery. This model indicates if the proxy of return is dependent to each of opening price, index volatility and heat and coldness of the market by using the market information of Tehran Stock Exchange during the years of 1375 to 1384 and time periods of 5 days, 15days, one month, two months and one season after flotation. The research concludes that there is a significant positive relationship between the stock return through the very first month of public offering and the market situation during latest season. Also it shows within the first two months of flotation, the return of the stock is not related to the situation of the market during current season. In other words, the economy situation (recession or recovery) affects the return of the IPO stock after 60 days of delay, which indicates the information asymmetries in Tehran Stock Exchange during the studied period.