ABSTRACT
Neural networks are one such process, that is, it maps some type of input stream of information to an output stream of data. It consists of ways to connect data/information to produce output that is consistent with the processes. Neural networks were originally devised to understand the workings of the human brain. The increased interest and use of neural models stems primarily from its nonlinear models that can be trained to map past and future values of the input-output relationship. A neural network is basically a data processing technique that links input streams with output, its use can be distinguished by several types of applications. Classification of input stream, association of output given sectors of input groupings, codification of input by producing output within a reduced dimensional subspace, simulation of output from input relationships and interconnections. Neural networks has profound implications and applicability to the finance field.
