Ranking and Comparison of Iran Stock Exchange among Stock Exchanges of the Middle East through Numerical Taxonomy

"Stock Exchange" means a formal capital market, by which buying and selling firm shares, government bonds, or private authentic institutions are made under the specific rules and regulations. An important characteristic of the stock exchange is legal protection of holders of savings and stagnant capital and legal requirements for capital applicants. On the one hand, stock exchange, which is taken into consideration by the economic analysts as the pulse of the country economy, is a center of savings collection and on the other hand, a certain and formal reference that stagnant savings holders can search a relatively convenient and safe place for investment, operate their surplus funds for investment in companies, and enjoy warrantedd and certain gain by buying government bonds and authentic companies. Tehran Stock Exchange formally began its’ operation by accepting shares of Industrial and Mineral Development Bank of Iran, as the largest complex of production and economic units of the time, and then Pars oil company's shares, government bonds, treasury bills, and bonds of Abbas Abad since 15 February, 1967 and has become one of the most productive regional exchanges as a result of a dramatic increase of exchanges in recent three years. However, profitability is not the only competency criterion of a stock exchange and other factors, including breath of market, liquidity, and degree of activity also play important roles. According to this, the present study tries to prioritize Middle East stock exchanges through numerical taxonomy. Our results showed that Iran stock exchange holds the seventh rank in the region.