Physics

Finance

Definition of Momentum

the product of the mass and velocity

the product of the share outstanding and return

Parameters

Mass (m); Velocity (v)

Share Outstanding (N); Security Return (R)

Momentum Theorem

${\displaystyle {\int }_{t=0}^{T}F\text{d}t}+mv$

${\displaystyle {\int }_{t=0}^{T}F\text{d}t}+NR$

The Meaning of Force (F)

The exogenous force applied in the Newtonian system

The driving force that makes the market price of the security converge to its intrinsic price