Theoretical modelling of stock price dynamics in stock markets using a phynance approach.

This paper presented time to time price dynamics associated with stock assets within stock markets. Our conjecture was that, stock prices are stochastic and time variant and as such they do attain and posses different values from time to time. We aimed to model the old way phenomenon of stock price dynamics using a distinct model from the physics field. We used the two-forms of Schrodinger equation and identified the one which best describes the dynamic nature of stocks. Our results suggested that, stock price dynamics can well be modelled and presented using the time independent Schrödinger equation (SE) with traceable stock price changes. This supported our conjecture as stock prices are traditionally known to be stochastic in nature and normally they are non-stationary. Additionally, we objectified to suggest another unique way of solving the Schrödinger equation contextualized into our case. We derived the solution using Frobenious method and the method of undetermined factors borrowed from ordinary differential equations. Fortunately, all the chosen methods proved to work well and to provide significant solutions. We therefore concluded that stock prices are non-stationary and recommend the wider use of such physics models.