Base volume is a mechanism that was employed in 2003 in Tehran Stock Exchange. The objectives of using this mechanism were controlling transactions and preventing spurious oscillations of stock prices. However, implementing this instrument faced opposition from the beginning. Capital market participants considered base volume as one of the main reasons for trading nodes. They believed that base volume's short-term benefits would be less important than its long-term disadvantages. In this study,

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... we examined the relationship between base volume (as an Iranian capital market specific-variable) and some variables such as stock returns and liquidity of firms listed on Tehran Stock Exchange. In this paper, base volume for sample companies, was calculated with regard to four criteria:(1) capital (the number of stocks issued), (2) cash dividends, (3) capital gains and (4) liquidity. The results showed that there was no relationship between base volume and stock returns. However, the significance of relationship between base volume and liquidity was approved.