The board members of the Securities and Exchange Organization convened the first meeting, chaired by newly appointed CEO Mohammad Ali Dehqan-Dehnavi, to help bolster the collapsing stock market.
One of the measures approved by the Securities and Exchange Commission to stimulate the demand side was the decision to allow the Capital Markets Stabilization Fund, a fund designed to solve the stock market’s credit crisis, to issue put options worth 30 trillion rials ($ 125 million). .
The move is in line with efforts to prevent further depreciation in stock prices, particularly in blue chips, the Securities and Exchange News Agency reported.
A put option is a financial market derivative that gives the holder the right to sell an asset at a specified price (the strike) up to a specified date. Put options are most commonly used to protect against a stock price falling below a certain price.
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