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Markets

Markets

  • Arbitrage: CNBC Explains Thursday, 16 Jun 2011 | 9:01 AM ET

    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.

  • Collateralized Debt Obligations (CDOs): CNBC Explains Thursday, 25 Aug 2011 | 3:02 PM ET

    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: CNBC Explains Thursday, 4 Aug 2011 | 3:23 PM ET

    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?

  • Capitulation: CNBC Explains
    By: Mark Koba
    Thursday, 4 Aug 2011 | 3:56 PM ET

    Capitulation is a way to describe a surrender between armies, but it's also a form of 'giving up' on the stock market. So, what is capitulation when it's used on Wall Street? What does it signify? CNBC explains.

  • Denial of Service Attack: CNBC Explains
    By: Mark Koba
    Thursday, 24 Jan 2013 | 2:22 PM ET

    There are times when websites — particularly financial sites — are purposely disrupted. These are called denial of service attacks. CNBC explains.

  • Fair Value: CNBC Explains Friday, 21 Oct 2011 | 9:35 AM ET

    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.

  • High Frequency Trading: CNBC Explains
    By: Mark Koba
    Thursday, 24 Jan 2013 | 2:34 PM ET

    There may be no better example of how fast things have become than by looking at high frequency trading in the markets. CNBC explains.

  • Limit Up, Limit Down: CNBC Explains
    By: Mark Koba
    Wednesday, 7 Mar 2012 | 12:17 PM ET
    Chicago Mercantile Exchange (CME) trader

    A couple of devices that major exchanges use to stop manipulation or extreme volatility in the markets are called "limit up, limit down." CNBC explains what these are and how they work.

  • Market Circuit Breakers: CNBC Explains
    By: Mark Koba
    Wednesday, 10 Aug 2011 | 11:59 AM ET

    Stock exchanges may need to stop panic selling by taking certain steps to halt trading. These moves are called market circuit breakers—or collars.  So how do they work? When are the used? CNBC explains.

  • Mortgage-Backed Securities: CNBC Explains Thursday, 18 Aug 2011 | 11:11 AM ET

    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.

  • Moving Day Average: CNBC Explains
    By: Mark Koba
    Thursday, 24 Jan 2013 | 2:09 PM ET

    The term moving average is frequently used in relation to the stock market. CNBC explains.

  • Private Equity: CNBC Explains
    By: Mark Koba
    Thursday, 24 Jan 2013 | 2:50 PM ET

    Private equity is a way of doing business to make money for rather large investments of capital. So how does it work? CNBC explains.

  • Quantitative Trading: CNBC Explains
    By: Mark Koba
    Thursday, 24 Jan 2013 | 3:34 PM ET

    Investors have a lot of tools and strategies to use when it comes to playing the market.One of them is called quantitative trading. CNBC explains.

  • Real vs. Nominal Returns: CNBC Explains Friday, 23 Sep 2011 | 2:43 PM ET

    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.

  • Roadshow: CNBC Explains
    By: Mark Koba
    Thursday, 27 Oct 2011 | 4:01 PM ET

    If a company that's privately owned wants to go public and offer investors the chance to buy securities in the firm, one of the first things they do is something called a 'Roadshow.' CNBC Explains.

  • Wells Notice: CNBC Explains
    By: Mark Koba
    Wednesday, 28 Nov 2012 | 9:34 AM ET

    If a company or individual gets what's called a Wells notice from the Securities and Exchange Commission, they won't be very happy to say the least. But who might get one and what do the signify? CNBC explains.

  • CNBC Explains: Quadruple witching
    By: Mark Koba
    Thursday, 15 Dec 2011 | 3:47 PM ET

    Witching hour may sound like a bar promotion on Halloween night, but it's really three important time periods for investors and the markets. So what are they and how do they impact investors? CNBC explains.

Central Banking Explained

Economy Explained

  • 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. 

  • An employee stacks mini solar cells after ends are soldered on them at the Xunlight Corp. factory in Toledo, Ohio, U.S.

    The producer price index is a key economic measurement especially when it comes to inflation.

Global Economy Explained

  • 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.

  • PIIGS is a not too favorable term used by bond analysts, academics, and the press, to refer to certain countries of Europe. CNBC explains.

CNBC Explains

Latest Special Reports

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

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  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.