The relation study between Free Float with Downside Risk and Liquidity on Tehran Stock Exchange (TSE)

The risk of investing in financial market is one of the investor's major concerns, as market participants, confronting any kind of bonds will ask about the risk level. on the other hand, liquidity as an effective element in risking rate and return is considerably important on the stock exchange. Avoiding risk gets investors look for lower risk stocks with high liquidity to provide more financial security. According to studies and researches, it sees that free float stocks rate can affect on liquidity and stocks risk. Therefore, regarding free float and their changes can be efficient in analyzing market conditions and help investors make better decisions. The research is tried to study the relationship between Free Float with Downside Risk and Liquidity on Tehran Stock Exchange (TSE). Considering the years 2004 to 2008, we had 233 companies to test theories. We used Eviews and SPSS softwares to deal with the relationship between variables during 16 quarterly terms. The results confirm the significant relationship between Downside Risk and Liquidity with Free Float.