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?
As governments worldwide harness technology to trace and curb the spread of the coronavirus, there are growing concerns about privacy violations and data protection. CNBC's Nessa Anwar discusses the trade-offs in a global health crisis.
German payments group Wirecard was once seen as Europe's most exciting fintech company. Now it's at the center of one of the biggest financial scandals in the country's history. CNBC's Tom Chitty explains.
A deadly clash between Indian and Chinese troops in June 2020 along the much-disputed Himalayan border resulted in the first loss of lives in fighting between the two militaries in 45 years. As politicians and diplomats from the two nuclear powers trade barbs, CNBC's Nessa Anwar explains why the latest flashpoint could be a cause for concern.