The method of determining future values of a company’s stocks and other financial values is called stock price prediction. The movements of stock prices and stock indices are influenced by many macroeconomic variables such as political events, policies of the corporate enterprises, general economic conditions, commodity price index, bank rate, loan rates, foreign exchange rates, investors’ expectations, investors’ choices and the human psychology of stock market investors. [Miao et al,2007] Hence to develop predictive models for stock market prediction is a difficult task due to the uncertainty involved in the movement of stock market. That is why it requires continuous improvement in forecasting models. Forecasting accuracy is the most important factor in selecting any forecasting methods. Financial ratios influence investment decision-making. This is the reason that stock market prediction with the help of binary logistic regression using relation between financial ratios and stock performance can enhance an investor’s stock price forecasting ability. This paper is presenting a review on Logistic regression Model (LRM).

Keywords : Stock Price Prediction, Financial Ratios, Logistic Regression Model.