Math in Stocks and Economics

Math in financial markets is highly used as people are needed to calculate the price of stocks and/or their own financial status. Whether you are buying stocks and investing in new upcoming businesses to earn cash or looking into your bank account and maintaining a constant and efficient flow of money, there is mathematics involved in any situation. All in all, mathematics takes over the world of the economical market and economical lifestyle.

One such thing that finance takes math in heavily is the theory of probability and how it affects the market. With that, finance takes in highly advanced mathematical foundations creating theoretical solutions to be used to create a financial theory. With this we have to know that everything is based off probability especially in the choosing of the Nobel Prize in Economics which creates then new math to help out those wanting to solve these equations.

However as some people do hate the idea of of putting probability in the works or finance, it profits greatly. Financial math is considered to be how humans make decisions in times of uncertainty.

There are also other equations that changed the world, and made life easier for every person who works in the art of stocks and finance. One such equation that is used is Black Scholes. It is based on the idea that big movements are very, very rare. Upon this equation, Scholes was rewarded the Nobel Prize in Economics and gave the stock market an immense increase in money all because of math.