Harnessing The (Mis)Behavior Of Markets by Rick Martinelli
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:6 (21-30): Harnessing The (Mis)Behavior Of Markets by Rick Martinelli
Do market prices vary due to large numbers of random
effects such as the whims of individual traders?
In 1900, Louis Bachelier was awarded a doctorate from the University of Paris following his defense of a dissertation titled "Théorie de la Spéculation," an event that marked the first time a serious academic paper addressed the behavior of the financial markets. In his dissertation, Bachelier proposed that market prices vary due to large numbers ofrandom effects, such as the whims of individual...