Classification of Financial Events and Its Effects on Other Financial Data

This research classifies financial events, i.e., the collapse of Lehman Brothers (2008) and flash crash (2010), their effects on two different stocks corresponding to Citigroup Inc. (2009) Iamgold Corporation (2011) verify if market data these years were affected more by crashes 2008 or 2010. Applying four techniques, dynamic Fourier methodology, wavelet analysis, discriminant clustering empirical evidence suggests that Brothers’ event is predictable since dynamics dataset can be likened a natural earthquake. On other hand, associated with unpredictable explosions. In addition, from are similar collapse. Hence, they predictable. The accurate classification events might help mitigate some potential events. methodologies used in this study identify strength practitioners researchers make informed decisions market.