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.
Alibaba's long-awaited IPO is finally around the corner, making this a good time to take a look at just how an IPO works.
The North Atlantic Treaty Organization includes 28 countries, and wields significant military might. Here's what you need to know.
CNBC explains the brands, labor battles and big contracts behind one of the biggest US moneymakers: the NFL economy.
From main street to the C-suite, this global survey examines the role of corporations in society and the economy.
In-depth coverage on Alibaba's IPO, including roadshow coverage, expert analysis, and Alibaba's stock price.
With more than 1,600 ETFs now on the market, learn more about how advisors and investors are profiting from the ETF boom.