INCREASING ROLE OF DATA ANALYSIS IN DISRUPTING THE EXISTING MARKETS OF FINANCE AND STOCKS (KEY IJP************989)

• Mehar Kaur

Abstract

This paper provides a comprehensive examination of the escalating influence of data analysis in reshaping the conventional frameworks of finance and stock markets. Drawing upon a diverse array of scholarly sources and industry reports, it elucidates the pivotal role that advanced data analytics plays in driving transformative changes within the financial landscape.Traditionally, financial markets have relied on conventional methodologies such as fundamental analysis and technical indicators for decision-making. However, the advent of big data technologies and machine learning algorithms has ushered in a new era where data-driven insights are paramount. This paper delves into how these advancements are revolutionizing various facets of financial markets, from algorithmic trading strategies to quantitative finance methodologies.Moreover, it explores the democratization of data and analytics tools, highlighting how individual investors and retail traders are leveraging these resources to compete with institutional players. By providing references to relevant studies and industry reports, the paper elucidates the democratization's impact on market dynamics, transparency, and innovation. Additionally, the paper addresses pertinent ethical, regulatory, and systemic considerations associated with the proliferation of data analysis in finance. Drawing on scholarly research and regulatory guidelines, it discusses issues such as data privacy, algorithmic bias, and market manipulation, emphasizing the importance of robust governance frameworks to mitigate risks. Overall, this paper offers a comprehensive analysis of the escalating role of data analysis in disrupting financial markets, underscoring its transformative potential while acknowledging the challenges and complexities it presents. By synthesizing insights from academic literature, industry reports, and regulatory guidelines, it provides a holistic perspective on this paradigm shift, offering valuable insights for researchers, practitioners, and policymakers alike.