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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With M
  5. Model

Model

Definition of 'Model'

A model or theory makes a series of simplifying assumptions from which it deduces how people will behave. It is a deliberate simplification of reality.

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Related Terms

Arbitrage Pricing ModelCAPMCharacteristics LineFactor ModelTheoretical ValueAccelerator ModelArbitrage Pricing TheoryBlack ScholesCapital Asset Pricing ModelData-SnoopingModel Code for Directors DealingsSecurity Market LineSeperation Theorem

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