Throughout the history of free markets, traders have made money through arbitrage, a tactic that takes advantage of price differences to make risk-free profits. Salman Khan of the Khan Academy describes how arbitrage works in a simple example.
One of the culprits blamed for the financial chaos of 2008-2009, were collateralized debt obligations. Like any derivative, the value of a CDO is based on an underlying asset. Khan of the Khan Academy explains.
Credit default swaps, also known as CDS, act as insurance against default, but these financial instruments are actually used in a number of complex ways. How are credit default swaps employed, and what is the rationale for these securities?
Fair value is a tool used by investors to understand the relationship between the value of futures contracts and the current price of a stock. The term is used in pre-market hours to help forecast the direction of the market.
Buying a home is usually the biggest individual investment people make in their lifetime and more often than not, a mortgage is involved. With such large sums of money involved in the mortgage market, financial firms profit by using a type financial instrument called mortgage-backed securities, or MBS.
The general rule in economics is that the value of money today will not be equal to the same amount of money in the future. Also known as the time value of money.
Economic data can be like the porridge of a certain fairy tale: Too hot, too cold, or just right.
Sequestration is a fiscal policy procedure adopted by Congress to deal with the federal budget deficit.
Americans often check their receipts to make sure they've bought everything they need, and probably to see if what they paid this time is any different from the last trip. The government does the same with the Consumer Price Index. Here are the details.
Argentina is almost certainly headed for a technical default of its bond-payment obligations at 12:01 Thursday morning.
As Pope Francis assumes leadership of the world's 1.2 billion Catholics, he's got his work cut out for him on many fronts.
There are all kinds of debt—as small as personal debt or as large as national debt. There's another type of debt as important as the rest—called Sovereign Debt. CNBC Explains.
More than 14 million autos have been recalled globally due to air bags that have ruptured, injuring passengers.
More companies in the food business are asking customers to not bring guns into stores. Based on gun laws, here's why.
An interactive look at the outlook for energy consumption and production around the world.
A series of high profile cyber attacks has created huge economic opportunity as businesses look to fend off future attacks.
Whether you're young and just getting started investing or moving closer to retirement, factoring in age will keep you ahead of the game.
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