Information Transparency and its Role in Capital Market

One of the competitive conditions in the stock market is the market transparency i.e. the availability of sufficient information and its accessibility with low-cost and for the public. When there is sufficient information in the market and is easily accessible to both buyers and sellers, both groups will decide correctly and easily. Purpose of this paper is to examine transparency and its different aspects in the capital market. For that reason, the definitions of the various investigators are presented in terms of transparency; after that, the procedure to measure the transparency and its identification components are listed. Afterwards, the relationship between transparency and disclosure of information and the performance of stock market with the information transparency have been investigated. After this section, the efficiency situations of the capital market and its fully transparent analysis have been analyzed. Finally, the conclusion is also presented.