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The Random Character of Stock Market Prices

Paul H. Cootner (editor)

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Founder connections

  • Edward O. ThorpNamed as an early quantitative influence
    In the original TIP128 interview, Thorp identifies Cootner’s collection as an early quantitative influence and discusses how its papers helped his work on option valuation. His exact edition and extent of reading are not established.
    Source

Summary

Paul Cootner’s edited collection brings together research on the statistical behaviour of stock prices. It includes an English translation of Louis Bachelier’s early work and papers on random movements, evidence from price series and the analysis of securities.

The collection records a stage in the development of mathematical finance. Its competing arguments and empirical studies show how a claim about predictable prices can be framed and tested, with technical material on instruments such as options and warrants.

  • SourceThe Random Character of Stock Market Prices — primary source · Publisher description and 1964 hardcover details; edited collection, ISBN 9780262030090.

Why read it Our view

Use this historical collection to study how researchers turn a market claim into a model and an empirical test. Compare assumptions and evidence across papers instead of looking for one trading rule. Its technical methods need mathematical care and do not establish a present day return.