The purpose of this paper is to study the relationship between liquidity and return on equity in companies with high volatility in Tehran Stock Exchange. Creating liquidity for securities is one of the most important functions of capital markets. In fact, liquidity is the most important indicator of the development of a capital market. That is why, when rating the stock market development rate, one of the main indicators used is the degree of liquidity in the markets. The main issue of the paper is presented below with regard to the research topic, which examines the relationship between risk, liquidity and stock returns in companies listed on the stock exchange.
