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Quantum mechanics is the body of scientific laws that describe the wacky behavior of photons, electrons and the other particles that make up the universe. Quantum mechanics is the branch of physics relating to the very small. It results in what may appear to be some very strange conclusions about the physical world.
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Scope and importance
quantumum mechanics (QM) developed over many decades, beginning as a set of controversial mathematical explanations of experiments that the math of classical mechanics could not explain. It began at the turn of the 20th century, around the same time that Albert Einstein published his theory of relativity, a separate mathematical revolution in physics that describes the motion of things at high speeds. Unlike relativity, however, the origins of QM cannot be attributed to any one scientist. Rather, multiple scientists contributed to a foundation of three revolutionary principles that gradually gained acceptance and experimental verification between 1900 and 1930.
Quantum mechanics deals with the micro-world, a world which has very minute scales and strange behavior, bordering on bizarre. What we see is usually the statistically averaged out world, on macro-scale. But this micro-world is strange and full of amazement for us if we try to get into it and understand how it works.In stock markets, however, a stock index is the averaged out value of stock prices of each individual representative company. So stock of a certain company can be viewed as a micro-scale object and the stock index can be viewed as the expected or average value of large number of stocks, which is quite analogous to classical measurements of physical entities. Stocks are always traded at a certain price in stock market, which represents its particle or corpuscular nature. But the values at which they are sold or bought continuously change, which is a wave property. This is one of the strong evidences that quantum mechanics, which incorporates the concept of wave-particle nature, must be able to describe the stock market theories. We will also talk about the uncertainty principle in case of stock markets later.
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This page was last updated on November 27, 2020