Random Walk Theory

This is a discussion on Random Walk Theory within the General Trading Chat forums, part of the Reception category; Originally Posted by new_trader Strange, I thought a transaction can only occur when individuals AGREE on a price to exchange. ...

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Old Feb 17, 2008, 11:27am   #61
 
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Originally Posted by new_trader View Post

Strange, I thought a transaction can only occur when individuals AGREE on a price to exchange. If the market is as unpredictable as you imply, why should there be any disagreement on price? Both are making an exchange at a price they agree is fair. The difference is that one thinks it is cheap at the current price and the other thinks it is expensive.
Perhaps I should have used the word value as opposed to price, so I will concede your point on semantics.

Let me try another angle. If everybody in the world agreed that Vodaphone shares were worth £ 1.71, do you think the price would change on Monday ?
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Old Feb 17, 2008, 12:07pm   #62
 
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Perhaps I should have used the word value as opposed to price, so I will concede your point on semantics.

Let me try another angle. If everybody in the world agreed that Vodaphone shares were worth £ 1.71, do you think the price would change on Monday ?
Yes.
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Old Feb 17, 2008, 12:09pm   #63
 
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Yes.
Fascinating.
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