Introducing the stock price prediction problem

Before we move on to the implementation of the application, we'll introduce what the stock price prediction problem is and what its challenges are.

Stock price prediction covers the practices – qualitative and quantitative – to predict the future value of a financial instrument traded on an exchange. The financial instruments are, for example, shares of publicly held companies whose prices change in real time and securities with a price not changing in real time. An exchange refers to a marketplace for buying and selling these instruments. The same stock market can contain multiple exchanges, such as the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotation (NASDAQ) systems in the US stock market.

Qualitative prediction can refer to the evaluation of the business model, for example, and not necessarily on measurable data. Quantitative prediction instead relies only on...