The Stock Model Based On The Equilibrium Theory

Global economic integration makes the whole world smaller and smaller. In the 21st century, stock market of China will contact the external world further closer. When change in the international market, the share market of China will make change consequently. This stock market is full of novel, puzzled and helpless, Successful investors should have higher theory knowledge and accumulate certain actual experience. To avoid the ignorance, crudeness and rash in stock market, that the theory is prior to practice at any time is always helpful.This paper uses the general equilibrium theory and model, disclose the formation mechanism of the stock price and realize its calculation concretely by the way of vector sign method. The equilibrium model of stock price in this paper predict the tendency of stock prices according to the quantity of supply and demand and factors that can influence the supply-demand relationship. The stock price will be high when most of person need it and be low when few person need it. The price of the stock depends on the value of the stock, but obtaining the value of a kind of stock is impossible. At any point, the stock price only depends on the equalization points of supply and demand. This paper have disclosed the inherent law that the stock price takes from the view of micro structure theory of financial market, There is combination of theory between practice and certain effectiveness. It will do good to analyze the current station and problem of domestic and international financial stock market, it will help us take precautions against financial risks and has realistic meaning with importance.The main content of the full paper divides into five parts altogether:First of all, carry on the summary to the micro structure theory of financial market briefly , introduce the current situation of the development and research both at home and abroad and analyze its reason, then put forward the research contents and method of this paper.Secondly, analyze the relevant theory of the equilibrium model of stock price. This chapter is one of the important chapters of this paper. In this chapter, by the base of analysis of preference and utility function of stock market, put forward the model of finitely pure exchange and prove the existence of stock equilibrium price. This is the foundation of the algorithm design in the follow.The third part mainly introduce the theory of pure separation of space. This chapter roughly belongs to the category of the general equilibrium theory. This offered thetechnological foundation for algorithm designing of stock equilibrium price followed.The fourth part is key part of this paper. By the base of research in existence of stock equilibrium price and the theory of pure separation of space before, put forward the algorithm designing concretely.Finally, briefly introduce the applyness of the model of stock equilibrium price and point out its defect and improving direction.