Encyclopedia of Quantitative Finance, IV Volume Set

Bachelier, Louis (1870 – 1946)

Formation Years

Louis Bachelier was born in Le Havre, France, on March 11, 1870. His father, a native of Bordeaux, moved to Le Havre after his marriage to the daughter of a notable citizen of Le Havre. He started a wine and spirits shop, and bought and exported wines from Bordeaux and Champagne. At the time, Le Havre was an important port. The Protestant bourgeoisie in the city, which dominated the local cotton and coffee markets, occupied the upper echelons of society. The young Louis was educated at a high school in Le Havre. He seems to have been a fairly good student, but he interrupted his studies after earning his high school diploma in 1889, when both of his parents died in the span of a few weeks. To provide for his youngest brother and his older sister, most likely, he took over his father’s business, but he sold it after a few years. In 1892, he completed his military service as an infantryman and then moved to Paris, where his activities are unclear. What is clear, however, is that Bachelier focused on his interests in the stock market and undertook university studies at the University of Paris, where in 1895 he obtained his bachelor’s degree in the mathematical sciences, without being a particularly distinguished student. After earning his degree, he continued to attend the lectures of the Faculty, including courses in mathematical physics ...