CNBC Explains Markets

Markets

  • Arbitrage_Video.jpg
    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. Salman Khan of the Khan Academy describes how arbitrage works in a simple example.

  • A trader works on the floor of the New York Stock Exchange.
    By: Tim Mullaney, Special to CNBC.com

    Here are the facts investors need to know about stock market corrections—what triggers them, and how long they typically last.

  • CNBC_Explains_Video_CDOs.jpg
    By: CNBC Explains

    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.jpg
    By: CNBC 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?

  • Traders on the floor of the New York Stock Exchange.

    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.

  • Trader on the floor of the New York Stock Exchange.

    It’s a good day to review circuit breakers. But when do they kick in and how do they work? CNBC explains.

  • 404 error

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

  • A screen displays news on the Dow Jones Industrial Average on the floor of the New York Stock Exchange, Oct. 15, 2014.

    Most managers compete against the S&P 500, but the Dow Jones Industrial Average remains the granddaddy of stock indexes, for good reason.

  • CNBC_Explains_FairValue.jpg
    By: CNBC Explains

    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.

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

  • Etsy is an online marketplace for handmade and vintage goods.

    Many investors think IPOs are too risky, if not outright dubious. Here are 6 key factors that can help identify the most promising IPOs.

  • 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.

  • NYSE_traders_worried8_200.jpg

    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.

  • CNBC_Explains_Video_MBS2.jpg
    By: CNBC Explains

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

  • Stuff your emergency fund with cash

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

  • 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.

  • CNBC_Explains_Video_RealvsNominal.jpg
    By: CNBC Explains

    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.

  • boss_office_200.jpg

    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

    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.

  • Quadruple witch

    Today's a witching day. It may sound ominous, but it's really just the alignment of some important time periods for the markets.  CNBC explains ....

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