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random walk theory

noun

  1. stock exchange the theory that the future movement of share prices does not reflect past movements and therefore will not follow a discernible pattern
“Collins English Dictionary — Complete & Unabridged” 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012


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Example Sentences

We meet the “mosquito man,” Sir Ronald Ross, whose study “The Logical Basis of the Sanitary Policy of Mosquito Reduction” became the foundation of the so-called random walk theory.

Then again, there’s always the so-called “random walk” theory to investing. 

From Forbes

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