ELI5: Explain Like I'm 5

Semimartingale

A semimartingale is a type of mathematical tool used to help researchers understand financial markets. It acts like a measuring stick for predicting how a market will change over time. In a semimartingale, researchers use equations to show how a certain stock, currency, or other asset might fluctuate in the future. Basically, it's like a map for how money flows in a market. Doing this allows researchers to make better decisions about how to invest, and even help them figure out when it’s the right time to buy or sell.
Related topics others have asked about: