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The Handbook of News Analytics in Finance by Leela Mitra, Gautam Mitra

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1.2 NEWS DATA

1.2.1 Data sources

In this section we consider the different sources of news and information flows which can be applied for updating (quantitative) investor beliefs and knowledge. Leinweber (2009) distinguishes four broad classifications of news (informational flows).

  1. News This refers to mainstream media and comprises the news stories produced by reputable sources. These are broadcast via newspapers, radio and television. They are also delivered to traders' desks on newswire services. Online versions of newspapers are also progressively growing in volume and number.
  2. Pre-news This refers to the source data that reporters research before they write news articles. It comes from primary information sources such as Securities and Exchange Commission reports and filings, court documents and government agencies. It also includes scheduled announcements such as macroeconomic news, industry statistics, company earnings reports and other corporate news.
  3. Rumours These are blogs and websites that broadcast “news” and are less reputable than news and pre-news sources. The quality of these vary significantly. Some may be blogs associated with highly reputable news providers and reporters (for example, the blog of BBC's Robert Peston). At the other end of the scale some blogs may lack any substance and may be entirely fueled by rumour.
  4. Social media These websites fall at the lowest end of the reputation scale. Barriers to entry are extremely low and the ability to publish “information” ...

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