A Primer on Natural Language Processing for Finance

Natural language processing (NLP) is a technical and quantitative field that involves the use of computer algorithms and techniques to analyze, understand, and generate human language. NLP has many applications and benefits in finance, such as the ability to analyze sentiment and extract information from financial text data, to automate the generation of trading signals and risk alerts, and to inform decision-making and risk management in the finance industry. In this primer, we provide a detailed overview of NLP for finance, covering the definition, importance, challenges and approaches, applications, and case studies and examples of NLP in finance. We also discuss the future directions and open challenges in NLP for finance, which will shape the development and advancement of NLP techniques and approaches in the finance industry. This primer is intended for technical and quantitative readers with an interest in NLP and finance, and is designed to provide a comprehensive and detailed understanding of NLP for finance