A Theoretical Study On The Plasticity And Elasticity Of Stock Price Fluctuation

Stock price-volume relation is not only an important theory in technological analysis of the stock, but also a focus in academic research. At the beginning the research on pricing theory of the assets and empirical research of security market, the trading volume was not paid attention to. However, after Osborne published Brownian motion in the stock market in 1959, domestic and international scholars carried on a large amount of research, because of the development of financial market and the accumulation of trade data. Since then, it has been a hot question in micro finance. In order to explain and fix the relation between stock price and trading volume, scholars have carried on a large amount of research in different aspects and in different markets. Most researchers focus on the relation between trading volume and the value of price changes, the volume and the price change per se, the volume and stock returns. These researchers have explained the relation between stock price and trading volume in different aspects, strengthen the understanding of the price-volume on the stock market, and greatly promoted the development of the theory of price-volume. A large number of results from the study indicate that there is a close connection between stock price and trading volume.This paper uses econometric tools, draws on the plasticity and elastic conceptions in the mechanics fields and considers the relation between stock prices and trading volume in different aspects, in order to set up complete stock price plasticity and elasticity theory and apply this theory by carrying on empirical researches. At first, this paper introduces the thought source of stock price plasticity and elasticity theory, defines the new concepts, such as stock's equilibrium price, the plasticity of price stock and the elasticity of stock price, and states the existence of stock price plasticity and elasticity through choosing volume-price correlation of some different stocks in different periods. Then this paper sets up stock price plasticity models, elasticity models and plasticity-elasticity models, uses the econometrics method to carry on examination and theory explanations to these models, and analyses the consistency of them with existing investment theories. The end of this paper is...