Random walk
Theory that stock price changes from day to day are accidental or haphazard; changes are independent of each other and have the same probability distribution. For a simple random walk, the best forecast of tomorrow's price is today's price. Related: Mean reversion.
Do you need a Financial Planner?
Click here to get matched to financial planners near you. Free service.
Get Started Now
Here are 10 random terms from our database: