Ec4024 Lecture5 Ss

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  • 1. The Stock Market from a Physicists Point of View EC4024 Lectures 5 and 6
  • 2. Today & The Next Day Is the capital market a market for capital? Supply and Demand Some mathematical ideas Supply and demand reconsidered Mrs Ryan Buys a dress Idealised, realistic supply and demand Limit Order Only Markets
  • 3. Is the capital market a market for capital?
  • 4. Set B Function Set A
  • 5. y = f(x) Range, Domain Ordinate, Abcissa
  • 6. Mrs Ryan Buys a Dress
  • 7. Limit Buy and Sell Orders
  • 8. Price Priority LO(Buy) LO(Sell) Priority D(p) S(p) > 46 0 - - 1 - 5 p = 46 0 - 0 1 5 5 p = 45 1 1 1 1 4 4 p = 44 2 2 1 1* 3 3 p = 43 3 3 1 1 2 2 p = 42 4 4 1 1 1 1 p = 41 5 5 1 - - 0 < 41 5 - 0 - - 0 Order example. LO(Buy) is a limit order to buy, similarly for LO(Sell). S . Price Priority LO(Buy) LO(Sell) Priority D(p) S(p)
  • 9. Next Time Do exercises Read Pilbeam, chapter 6