An Econophysics Model for the Stock-Markets' Analysis and Diagnosis

TL;DR

This paper introduces an econophysics model for analyzing stock market transactions by drawing analogies with electrical fields, providing an energetic approach to understanding rate variations in share trading.

Contribution

It presents a novel econophysics framework that models stock market dynamics using analogies from physics, specifically electrical fields and energetic rate analysis.

Findings

The model successfully describes share transaction dynamics.

It offers a new perspective on financial information flow.

The energetic approach explains rate variations in stock trading.

Abstract

In this paper we present an econophysic model for the description of shares transactions in a capital market. For introducing the fundamentals of this model we used an analogy between the electrical field produced by a system of charges and the overall of economic and financial information of the shares transactions from the stock-markets. An energetic approach of the rate variation for the shares traded on the financial markets was proposed and studied.