random walk theory


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Related to random walk theory: Efficient market hypothesis

random walk theory

n
(Stock Exchange) stock exchange the theory that the future movement of share prices does not reflect past movements and therefore will not follow a discernible pattern
References in periodicals archive ?
Market expectations and their rationality lead to such diverse topics as insider trading, the role of consensus forecasts, the random walk theory of prices, technical analysis, market timing, and the credibility of policy announcements.
The course explains in detail the characteristics of an efficient market, describing the random walk theory and examining the different forms of the efficient market hypothesis and their various implications for analysts, management and investors.