This research is an attempt to determine the effectiveness of the regulatory requirements governing the issuance of new
securities imposed by the Iranian Stock Exchange (Exchange).
In particular, this study seeks to ascertain the level of
compliance with the mandate of the "Exchange" and its impact thereof. on the newly issued stock.
The population of the study was the 1isted compaines in the Iranian Stock Exchange. The result of the study provides evidence
suppoting the claim that the "ceiling" established by the mand<1te is arhitrary and not h;lsed on expert :lppraisals. Secondly, the
result of the study suggests that the reason for firms issuing stocks fur cash, when in need of capital, is the Jack of altern:ttive
instruments through which they can r
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