
Stock Price Simulation
Stock price simulation is a method used to model and predict how a stock's price might change over time using mathematical and statistical techniques. It considers factors like market volatility, economic trends, and randomness to generate potential future price paths. This helps investors and analysts evaluate risks and opportunities by exploring different scenarios, rather than relying solely on historical data. Essentially, it’s a way to create multiple “what-if” scenarios that provide insights into possible future stock movements, aiding more informed decision-making in investing and financial planning.