Capability of markets to accept a new stock

Privatization is one of the most important elements of the continuing global phenomenon of the increasing use of markets to allocate resources. One important motivation for privatization is to help develop factor and product markets, as well as security markets. Among the various factors of market development, we try to answer to one of the main question: ‘which group of markets or indices is better to develop and absorb a new company?’. Our method is based on Level Crossing to quantify the following factors: stage of development, activity and risk of indices. As an example, considering Tehran Price Index (TEPIX), we compare financial and industrial indices to find which index is more preferable to absorb a new company in its group.