Louis Bachelier

Louis Bachelier was a French mathematician who, in 1900, developed the first mathematical model to describe how stock prices move over time. His work introduced the concept that stock prices fluctuate randomly, similar to particles in Brownian motion, and laid the foundation for modern financial theory. Bachelier’s insights helped us understand market behavior and paved the way for methods used in options pricing and risk management today. Though initially overlooked, his contributions are now recognized as pivotal in the development of quantitative finance.