SoftBank Winds Down Options Trading After Investor Backlash

SoftBank Winds Down Options Trading After Investor Backlash

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Business

University

Hard

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The transcript discusses SoftBank's strategic shift away from derivatives trading due to market changes and shareholder pressure. The reduction in volatility following the US elections and COVID-19 vaccine prospects made derivatives less profitable. Controversy arose over disclosure practices, impacting SoftBank's market cap. Questions about the rationale for SoftBank's short-term investments and governance issues were raised, especially with Masayoshi Son's personal stake in the trading unit.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What prompted SoftBank to reconsider its derivatives investment strategy?

The rise of cryptocurrency investments

A new CEO with a different vision

A successful derivatives trading year

Increased shareholder pressure and macroeconomic changes

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did SoftBank's market cap drop significantly in September?

Due to a major acquisition

Because of undisclosed option bets

As a result of a natural disaster

Owing to a new competitor entering the market

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What unusual activity did investors question about SoftBank?

Its expansion into the automotive industry

Its investment in long-term technology

Its involvement in public stock trading

Its focus on renewable energy

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did SoftBank justify its trading program?

By stating it was a major part of their strategy

By claiming it was a temporary measure

By saying it was a mistake

By highlighting it was only 1% of total shareholdings

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What governance issue was raised due to Masayoshi Son's actions?

His lack of involvement in the trading unit

His personal stake in the trading unit

His decision to sell off major assets

His appointment of a new board member