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.
Here are the facts investors need to know about stock market corrections—what triggers them, and how long they typically last.
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.
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 ....
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.
The producer price index is a key economic measurement especially when it comes to inflation.
CNBC explains: What is a correction? How do they come about? What do they mean for the stock market?
CNBC's Phil Han explains what would happen if President Trump started a trade war with Mexico and why he wants to renegotiate NAFTA.
You'll be surprised at what the correlation has been between the high-yield bond market and the overall stock market.
For the Federal Reserve, voting to hike interest rates is really the easy part.