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This paper is an innovative scientific report about the following economic problems. It considers why the stock price cannot be predicted and the function of the invisible hand and the law of supply and demand. Incidentally, it is possible to solve these by other science, for example, the systems’ analysis theory in engineering. Therefore, economic science is very rational or systematic economic systems are not black boxes. It cannot be solved with traditional science but with other science, and proved with simulations. This scientific research has the potential to be sensational for economic development; therefore, scientists across the world must be informed about its solution.

This paper is an investigative scientific report for economists about the theoretical problems in economics, such as: 1) the “prediction of stock price”; 2) the “invisible hand”; as well as 3) the law of “supply and demand”. The author is interested in the economic science from an alternative science perspective. In addition, he has some innovative scientific research reports [

In the past, many physicists at NASA went to work at Wall Street, but nobody succeeded there. They found that the stock market exhibited a “random walk”. Why did they fail? The stock market is a representatively complex system in nature. For instance, if someone solved the stock market system by other science, the systems’ analysis theory in engineering, based on the multidisciplinary science shown in

However, why cannot many physicists and other scientists solve the problem? The reason is the basic rule of physics. Note that most physical phenomena must entirely be measurable and reversible; otherwise, it cannot be treated as a physical element. Nevertheless, the stock market is endlessly and extremely varying in time, almost exhibiting a “random walk”. We can measure it that the problem must be solved by other science, such as the time series function in real time [

Nevertheless, there is a problem. It is very difficult for economists to understand this without the knowledge of other science such as the systems’ analysis theory. We advised to them: they must spend their money, time, and effort to studying the other science―it is not free!

We built a hypothesis from the inner structure of the stock market in

The primary topic; “we cannot predicting the stock market,” is answer here; the stock market causes a feedback system; therefore, we cannot predict it completely and perfectly. If someone was to fix and measure it by tool, we could easily forecast it. If someone wanted to win in the stock market, they would have to bear in mind its properties.

By the way, we can demonstrate the stock price using a simulator [

Step one: In the case of listing on the stock market, we can obtain the response of the unit step function, as shown in

The mathematical process [

We substitute and develop the equation with variables

Therefore, the process is a normal analyzing process. The transformed reversible Laplace form is

We can obtain

where A, B, W, and

Equation (4) can be characterized in

Step two: The other case of variable information in the stock market is if a random function

Moreover, we can discern other properties from the experiment. The stock market could be externally controlled manually by humans and the circuit break in the stock market is a tool similar to the time delay. This solution can be applied to other systems such as social or political systems as well as exchange rates and money trading control, all based on a machine as MATLAB [

We found the hidden secret in the stock price using the hypothesis in Section 2. Fur-

thermore, we could prove other topics by the same method. The secondary topic, the “invisible hand” by Adam Smith has the same algorithm of the stock market: it is self- controlled for counterbalancing similar to automatic regulating systems. The relationship is characterized by

The third topic, the law of “supply and demand” is identical to the “invisible hand.” Therefore, we can solve all three topics successfully, as shown in

In summary, economic science is very rational; it is possible to analyze economic systems with the systems’ analysis theory. Therefore, we can easily find the hidden secret in economic systems. The author has spread this solution out to other scientists from economics to philosophy. In conclusion, this report is sufficient for economists.

Cha, D. (2016) Investigative Report for Economists; “Prediction of Stock Market” and Functional “Invisible Hand” and “Law of Supply and Demand. Theoretical Economics Letters, 6, 1299-1303. http://dx.doi.org/10.4236/tel.2016.66120