1. Famous scholars and their theorems in the history of finance. In the 1950s, Von Neumann and Menstern established a rational actor choice under uncertainty based on axiomatic assumptions.

The framework within which the analysis is conducted is expected utility function theory.

Arrow and Debreu later developed and improved the general equilibrium theory, which became the basis of economic analysis and thus established a unified analytical paradigm for modern economics.

This paradigm has also become the basis for modern financial analysis of rational people's decision-making.

In 1952, Markowitz published the famous paper "portfolio selection", establishing modern asset portfolio theory and marking the birth of modern finance.

After that, Modigliani and Miller established the MM theorem, created corporate finance, and became an important branch of modern finance.

In the 1960s, Sharp and Lintner established and expanded the capital asset pricing model (CAPM).

In the 1970s, Ross established a more general arbitrage pricing theory (APT) based on the no-arbitrage principle.

In the 1970s, Fama formally stated the efficient market hypothesis (EMH), and Black-Scholes-Merton established the option pricing model (OPM). At this point, modern finance

Science has become a logically rigorous discipline with a unified analytical framework.

However, a large number of empirical studies on financial markets in the 1980s discovered many anomalies (anomalies) that modern finance cannot explain. In order to explain these anomalies, some financial scientists applied the research results of cognitive psychology to investment analysis.

By the 1990s, a large number of high-quality theoretical and empirical documents had emerged in this field, forming the most dynamic school of behavioral finance.

Matthew Rabin, the 2001 Clark Prize winner, and Daniel Kahneman and Vernon Smith, the 2002 Nobel Prize winners, are all representatives of this field.

figures who have made important contributions to the basic theory in this field.

The awarding of these awards to experts in this field also shows that mainstream economics affirms this booming field and promotes the further development of this discipline.

This field is called behavioral finance abroad, and most domestic literature and monographs call it "behavioral finance".

2. What are the famous financial events in history? The Dutch tulip bubble in the 16th century was the earliest economic bubble recorded in history. In the 1990s, Changchun, China also staged the madness of Clivia.

The British South Sea stock incident after the tulip bubble caused Newton, the great scientist who was the director of the Royal Mint, to lose all his money.

There are countless financial bubbles on Wall Street, as witnessed by the three ups and downs of Livenmore, the most famous trader in the early 20th century.

In essence, bubbles are capital speculation.

When the liquidity of society exceeds the needs of the real economy and the interest rate is not enough to keep funds in financial institutions, funds will flow into a certain field to find profit opportunities and push up the prices of commodities in that field, forming a extreme situation.

Attractive profit effect.

More and more funds are attracted in, forming a "snowball" effect. When the price of the commodity is so high that subsequent funds cannot support it, or society's price expectations for the commodity are reversed, the bubble bursts.

It's like passing the flower by beating a drum. If no one takes the last stick, the game is over.

When the bubble burst, funds continued to withdraw, accelerating the decline in prices, which itself accelerated the collapse of the bubble.

Bubbles are actually capital-generated pyramid schemes that rely on the development of offline businesses to survive. Once there is no injection of fresh capital and no more people participate, the bubble cannot be sustained.

3. Development history of the financial industry The modern financial industry has slowly developed since the 11th century, and its origins began with an organization called the "Knights Templar".

During the Middle Ages, the territory of European Christianity was occupied by Christianity.

In the 11th century, the Pope carried out the Crusades and quickly liberated Jerusalem, the holy land of Christianity, and then opened it to pilgrims from all over Europe.

The Knights Templar were founded to protect these pilgrims.

But soon, the knights discovered that protecting pilgrims could be a business.

Because the pilgrimage is so long, it is not safe for pilgrims to bring a lot of belongings, so a system for hosting property in an off-site location is needed.

However, at that time, there were many small countries in Europe and there were many barriers. It was impossible for any country to establish such a transnational financial custody system. Only armed military forces like the Knights Templar all over Europe could do this.