Communications of the IIMA


Financial articles can move stock prices. The terms used in an article can be a predictor of both price direction and the magnitude of movement. By investigating the usage of terms in financial news articles and coupling them with a discrete machine-learning algorithm, we can build a model of short-term price movement. From our research, we investigated the terms creating the largest price movements amongst five part of speech textual representations; bag of words, noun phrases, named entities, proper nouns and verbs.