Economic Analysis Of Fluctuation Of Stock Prices And Its Application

The Law of Supply and Demand is a common rule of all markets and the equilibrium analysis is the best presentation of it. The fluctuations of stock prices in stock market is a result of multiple factors, such as shareholder's mental status, socioeconomic development and the Law of Supply and Demand and etc.. Based on many years of practice, it proves that the tendency of stock prices, showed on the geometric figures, is very similar to the supply-demand curves. This thesis discovers, by analysis of mathematical model, the phenomenon that the Law of Supply and Demand, by relative changing speed of supply and demand, influences and decides the tendency of stock prices. Thus, it establishes a relatively more direct connection between the tendency of stock prices and the supply-demand relation, and further to establish, taking the stock price as the core, a connection between the market behavior and market supply and demand. Furthermore, this thesis investigates, on the relationship of market behavior"price, quantity, time and place", the variation of supply-demand relation and subsequently puts forward referential suggestion about manipulation methods and strategies for investors in the stock market.This thesis is divided into five chapters. The first chapter is a preface, which is mainly to give a general description about the security analysis theories and leads to the issues to be discussed. The second chapter is about the equilibrium analysis of fluctuation of stock prices, which discloses, by the analysis method of figure model, the relationship between the equilibrium of supply and demand and the tendency of stock prices on stock market. The third chapter is about the analysis of metal factors about the variation of demand and supply. Based on the study achievements of behavioral finance, the main contents of this chapter are to explain the causes that result in inconsistent variation of supply-demand relation. The fourth chapter concerns the fundamental strategies of stock market manipulation, which investigates the variation of supply-demand relation (on the basis of corelationship of"price, quantity, time and place") and puts forward some basic strategies for stock market manipulation. The fifth department is on case analysis. Based on the basic manipulation strategies in chapter 4, the chapter gives analysis on detail manipulation of practical cases and gives some hints for the issues that shall be paid attention to in application.