About Salman Khan
Salman Khan is the Founder, Executive Director, and Faculty of the Khan Academy, whose mission is to provide a free world-class education to anyone, anywhere. He has worked for both hedge funds and Fortune 500 companies and holds an MBA from Harvard Business School, where he was the president of his class. He also attended MIT, where he received three degrees: a Masters in Electrical Engineering & Computer Science, a B.S. in Electrical Engineering & Computer Science, and a B.S. in Mathematics.More Topics Explained
About CNBC Explains
CNBC Explains dissects the complicated economics of our world — everything from stocks and corporate balance sheets, to international trade and government policy. We are pleased to feature the work of Salman Khan, founder of the Khan Academy, as well as the reporting of CNBC anchors and editors. Each short video explains a complex topic using a unique digital interface and easy-to-understand style that simplifies even the most arcane topics.
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Arbitrage: CNBC Explains
Published:
Thursday, 16 Jun 2011 | 9:01 AM ET
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By: CNBC Explains
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. Investors such as Warren Buffett and big banks have seen success using arbitrage in everything from financial instruments and currencies to mergers and commodities. Salman Khan of the Khan Academy describes how arbitrage works in a simple example.
From this video, you’ll understand:
- The rationale behind arbitrage
- How arbitrage affects supply and demand
- The effect of arbitrage on price
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