The stock market is an important part of the economy as a whole, with a strong link between the stock market and the economy. According to the effective market hypothesis, stock prices are a random step so that the underlying variables are not able to predict the total stock price index in the short run. In contrast to the current stock price index in a functional market, it is a leading variable and fully reflects all the information available on the future trend of economic variables. Therefore, due to the importance of stock market activity in the recession forecast, the effect of stock market activity on predicting recessions in accepted companies Examine the Tehran Stock Exchange. The present study is categorized according to the purpose of the applied research type. The purpose of the applied research is the development of applied knowledge in a particular context. Also, the present research is correlated in terms of method and nature of research type. Which were selected on a sample of 405 companies from Tehran Stock Exchange companies during the years 88-95, using simple stratified random sampling method, done. The required information was collected through a researcher-made questionnaire. Normal distribution of data was determined by Kolmogorov-Smirnov test and for data analysis and hypothesis testing, descriptive statistics and Pearson correlation coefficient were used and in the inferential level, simple linear regression analysis was used. The results of the study confirmed the stock market activity, stock market liquidity, stock market returns, and stock market stability to predict the recession.
