Cybernetic Approach for the Stock Market

2017 ◽  
pp. 193-210
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model. This model formalizes the new architecture for the macro economy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the Money, Finance, Spending and Real Economy (MFSRE) with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The stock market, exemplified by the empirical case study of Bangladesh's state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

A New Macroeconomic Architecture for the Stock Market

2014 ◽  
pp. 1521-1538
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh's state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

A New Macroeconomic Architecture for the Stock Market A General-System and Cybernetic Approach

2013 ◽  
Vol 4 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh’s state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

scholarly journals The influence of rumors in the stock market: a case study with Petrobras

2013 ◽  
Vol 25 (3) ◽  
pp. 187-193 ◽  
Author(s):  
Fábio Marques da Cruz ◽  
Maria Yêda Falcão Soares de Filgueiras Gomes
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Stock Exchange ◽  
Price Fluctuations ◽  
Knowing That ◽  
Cash Market ◽  
The Press ◽  
The Media ◽  
A Company

This paper analyzes the influence of rumors on price fluctuations in the Stock Exchange of São Paulo between 2007 and 2011, through a case study with Petrobras, a company whose stock had the largest trading volume within the period. For this purpose we used the historical prices of cash market provided by the stock exchange. The communications in which Petrobras provides clarifications regarding unofficial information disclosed in the press were also collected from the stock exchange website. The analysis of these documents helped to create a diagram to represent the information about the rumors and categorize them by subject. This diagram was applied to a database to store the information collected from the company’s communications. Then this information was retrieved to analyze the influence of rumors on price movements. The results confirm that the company’s responses to rumors influence price fluctuations of its stock. At eagerness for information to dilute uncertainty, investors make decisions based on rumors betting on the credibility of the media that disclose them, even though knowing that the information is not always reliable.

scholarly journals Differences In Intrinsic Value With Stock Market Prices Using The Price Earning Ratio (Per) Approach As An Investment Decision Making Indicator (Case Study Of Manufacturing Companies In Indonesia Period 2016 - 2017)

2019 ◽  
Vol 1 (1) ◽  
pp. 82-92
Author(s):  
Ardy Indra Lekso Wibowo Putra ◽  
Aditya Dwiansyah Putra ◽  
Murni Sari Dewi ◽  
Denny Oktavina Radianto
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Intrinsic Value ◽  
Investment Decision ◽  
Manufacturing Companies ◽  
Market Prices ◽  
Investment Decision Making

An investor must be able to consider all kinds of steps that will be taken or that will be carried out, assessing stocks - shares that will provide optimal benefits in making an investment decision. By analyzing the intrinsic value of the price of a company's stock, investors can assess the fairness of the stock price. The method used to analize intrinsic value is fundamental analysis using the Price Earning Ratio (PER) approach. The samples to be taken in this research are manufacturing companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) for the period 2016 - 2017 with certain criteria. The results of this research will show that the shares of companies listed are in overvalued, undervalued or correctly valued conditions. So investors can decide to buy, hold or sell their shares.

scholarly journals The Stock Market Situation and Economic Growth – An Attempt to Assess the Dependence

2021 ◽  
Vol 4 (32) ◽  
pp. 117-128
Author(s):  
Michał Radke
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
Research Work ◽  
Calculated Data ◽  
Stock Index ◽  
Rate Of Return ◽  
Real Economy ◽  
Stock Market Index ◽  
Market Situation

The aim of the article: The main aim of the article is to analyze the relationship between the stock market situation and the real economy, measured by the strength of the correlation between the rate of return on the stock market and the rate of GDP growth in European capital markets. The next objective is to answer the question whether the stock market index changes are ahead of, and if so, by how much, GDP changes. The author’s hypothesis stipulates that the stock exchange situation precedes the change in economic activity and serves as its forecast. Methodology: The empirical research work was carried out on the basis of quarterly data value of the stock index and the GDP between 2010 and the first quarter of 2021 for 20 European countries. For indices and GDP, the quarterly dynamics of the rate of return and GDP were calculated. Data on the value of the stock exchange index was taken from the website www.stooq.pl, while data on GDP was taken from Eurostat. Subsequently, the analysis concerned the correlation relationships between the variables on the basis of the Pearson correlation coefficient. The correlation between the variables was calculated without delay, as well as with a delay of one, two or three quarters of the returns on stock indices. Results of the research: Changes in the value of the stock exchange index is in most cases positively correlated with the change in GDP and the correlation is pronounced, but it is low and moderate. The only market for which a significant correlation was observed, was the Polish market. At the same time, it can be stated that the rates of return on the stock exchange index precede a change in GDP by one or three quarters. No changes were observed for the analyzed countries for two quarters.

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