Research Added

Stock Market Index Forecasting by Neural Networks Models and Nonlinear Multiple Regression Modeling: Study of Iran's Capital Market

• This research examines and analyzes the use of neural networks as a forecasting tool.Specifically a neural network's ability to predict future trends of Stock Market Indexs is tested....While only briefly discussing neural network theory, this research determines the feasibility and practicality of using neural networks as a forecasting tool for the individual investor.
• This research validates the work of perceptron and describes the development of a neural network that achieved a 95.8 percent probability of predicting a market Index rise, and an 83.5 percent probability of predicting a market drop in the TEPIX.
• It was concluded that neural networks do have the capability to forecast financial markets and, if properly trained, the individual investor could benefit from the use of this forecasting tool
• It is clear from the model accuracy probabilities that neural networks can accurately predict financial markets if given the proper data upon which to train. When compared to regression analysis,neural networks are a better tool