The promise and peril of Iranian stocks

Iran has long had a hard time attracting foreign cash. But with this summer’s historic nuclear deal, foreign investors are finally eyeing the pariah nation. Investors, though, are going in with their eyes open to the numerous obstacles, such as limited company transparency, a small number of outstanding shares for trading, a lack of custodial services and high inflation. Most foreign entities aren’t yet legally allowed to buy shares on the Tehran Stock Exchange (TSE). Still, more foreign buyers are now considering the Iranian equity market because, over the next six to 12 months, they’ll likely be able to access the TSE as the nuclear deal takes effect.