International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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SYSTEM DYNAMICS MODELING OF STOCK MARKET VOLATILITY AND ITS MACROECONOMIC DETERMINANTS VIA STOCK AND FLOW DIAGRAM

    1 Author(s):  DR. SONAM BHADAURIYA

Vol -  7, Issue- 9 ,         Page(s) : 86 - 93  (2016 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

Stock markets are barometers of the economy. It is expected that the markets and their indicators, in the form of indices, reflect the potential of the corporate listed on them, and, in the process, the direction and health of the economy. If a country’s economy is performing well and expected to grow at a healthy rate, the market is usually expected to reflect that. Stock market dynamics or volatility refers to the variation in the stock price changes during a period of time. The volatility of stock market indicators goes beyond anyone’s reasonable explanations. Generally, variations in stock market are caused by the fluctuations in the performance of the economy or the macroeconomic indicators of an economy. The modeling of stock market volatility is one of the key areas of present financial research as stock market is the main determinant of economic development of a country. The present paper is intended at developing a dynamic model of macroeconomic determinants of stock market volatility via stock and flow diagramming

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