What Is the Financial Information Market?

There is plenty of financial data that influences the direction and stability of the economy and broader financial markets. That data is available in its raw form and through analysis in the financial information market. Information is available on financial websites, business television programming, and magazines that focus on investing and the economy. Data that investors and financial professionals, including analysts and traders, use to make decisions comprises the financial information market. The market for financial information is quite broad, but there are places where analysis of niche segments of the economy are available.

Financial analysts are a significant component of the financial information market. These professionals are paid to analyze and interpret economic and corporate events that affect the overall financial markets. Often, reports and publications are issued to clients with synopses of economic events that could impact an investment.

Also, analysts are known to share financial information analysis with the public in finance publications and business television. Research and analysis by the economist community can be broad and outline forthcoming economic trends, such as an anticipated rate of economic growth in a region based on gross domestic product (GDP). This information could be more focused on components such as the pace at which consumers are spending money.

Business television programming is another factor in the financial information market. Although there are many different opinions coming through this channel, many respected financial authors and economists in addition to economic policy makers are frequent guests in this medium. Live business television programming is often in response to current financial events and offers immediate responses to events that are unfolding that may impact the markets. For instance, when a company does not meet its profit expectations in a quarterly earnings report, a business program may invite the chief executive of that corporation onto a show to discuss the results and offer investors an explanation about lagging profitability.

The financial information market also includes the data provided by companies that trade in the stock market. When there is a major corporate event at an industry-leading company, such as a new product that will require large amounts of copper or silver to develop, this could influence the price of the raw material used to make the product. As a result, when a company has a major announcement, such as an expansion of product development into a different region, this information becomes actionable information that investors and traders alike can respond to and becomes a part of the financial information market.