IFB Launches Internet TV to Help Improve Financial Literacy

EghtesadOnline: Iran Fara Bourse, the junior equity market in Tehran, launched an internet TV on Sunday to help improve the financial literacy of stock market investors.

News ID: ۷۸۶۸۴۱

10 August 2021

The ITV “Vachar”, is borrowed from the old Persian term meaning “market” or “bazaar”, the IFB website reported.

“We are hopeful that the media play a role in improving the financial literacy of investors,” the IFB chief Amir Hamouni told the inauguration ceremony.

The media outlet works as a video-on-demand platform, which allows viewers to see a selected film or TV program their convenience. It enables users to access videos without a traditional video playback device and the constraints of a typical static broadcasting schedule.

Given the large number of investors in the stock market, the relevant authorities believe there is a pressing need for financial training for the public to raise awareness and avoid unwanted volatility in the bourse.

Unprecedented increase in the number of neophyte investors last year raised serious concerns as most newcomers lacked sufficient knowledge and expertise in share trade and many lost their lives savings.

While newcomers normally should translate into fresh liquidity flowing in the stock market, they were blamed for displaying herd behavior causing steep volatility in the bourse.

Data released by the Central Securities Depository of Iran show that the number of trading codes reached 32 million by the end of the fiscal year in March 2021.

The first half of previous fiscal year saw a flurry of new investors into the stock market considering the fact that prior to that less than 12 million codes were issued in more than a half a century.

Lacking foresight and financial literacy, most of new investors were pushed deep into the red during the unprecedented market collapse when the bubble burst.

Estimations suggest that the majority of newcomers who dashed into the stock market before August 2020 lost up to 70% of their portfolio value.

The main index of Tehran Stock Exchange, TEDPIX, rocketed 300% in less than five months -- from 500,000 points in March 2020 to 2.15 million points in August.