ELI5: Explain Like I'm 5

Brownian model of financial markets

Brownian motion is like a game of rock, paper, scissors. It's a way of predicting what will happen in the financial markets. The basic idea is that prices of stocks and other financial assets move randomly, like a game of rock, paper, scissors. This means that no one knows in advance which way the prices will go next. The Brownian Model of financial markets helps us to try to predict what will happen, by using mathematics to better understand the patterns of how prices move.