The Risky Trade Behind 'The Mother of All Shorts'

The Risky Trade Behind 'The Mother of All Shorts'

Assessment

Interactive Video

Business

University

Hard

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The video discusses AMTD Digital, a Hong Kong financial services firm with an extremely high valuation compared to its earnings. Despite being labeled 'the mother of all shorts,' professional short sellers are cautious due to the stock's low float and high borrowing rate. The company's fundamentals show modest revenue and profit, not justifying its high valuation. AMTD Digital has not provided clear reasons for its volatile share price but is monitoring the situation.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Why is AMTD Digital referred to as the 'mother of all shorts'?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What did AMTD Digital say regarding the trading abnormalities in their stock?

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