Computational Analysis of Financial Losses among Competing Stock Exchange Investors Based on Trading Period Length

Abstract

The stock exchange serves as a cornerstone of modern financial systems which operates as a highly competitive platform that facilitates liquidity for investors. This paper presents a computational analysis of the Nigerian stock exchange, delving into the complex dynamics that govern its behavioural system with a focus on the investigation of the influence of the decreasing variation of the trading periods on the dividends accrued by competing investors within the stock exchange. To unravel these intricate dynamics, the study employed a mathematical framework based on a system of first-order nonlinear ordinary differential equations (ODEs) which is both continuous and partially differentiable in achieving objective. A key methodological approach utilized in this research was the ODE 45 numerical method, which is a highly efficient computational scheme, to quantify the dividends of stock exchange investors who experiencing a decreasing variation in the duration of their trading periods. One of the key findings of this study is the revelation that a decrease in the length of the trading period within a competitive market environment leads to a significant reduction in the dividends of the investors. The result of this investigation offers profound insights for investors, financial analysts, and policymakers who must navigate the complexities of this financial ecosystem. By advancing the understanding of how variation of trading period impacts dividend returns on investments, this study stands to inform more strategic decision-making and policy formulation in the context of the Nigerian stock exchange.