Poisson Process Modeling of Pure Jump Equities on the Ghana Stock Exchange

Although Geometric Brownian Motion and Jump Diffusion Models have largely dominated the literature on asset price modeling, studies of empirical stock data Ghana Stock Exchange led to conclusion that there are some stocks in which return processes consistently depart from these models theory as well its statistical properties. This paper gives a fundamental review development model based pure jump capture unique behavior exhibited by Exchange. been examined thoroughly other authors, is lack mathematical clarity terms deriving underlying process. provides link between prices existing measure space Levy We test suitability evidence using numerical procedures. The simulation results show trajectories better fit for than those produced diffusion models.