When the Market meets the Web
Recently, Internet has allowed potential investors free access to information.
More particularly, firm and market information demand and supply can now be drawn from the recently released Google trend database.
Consequently it allows us to evaluate the link between stock market activity and information demand and supply.
We know that a voluminous studies tended to evaluate the interactions between them.
However, the difficulties to quantify information flow have led to show the importance of demand for information as a news proxy.
In this book, we use this direct proxy of investor demand for information based on the internet search volumes in order to determine the impact of internet news on stock market activity.