Business, Technology

September 10, 2020

Softbank may have influenced stock prices

Source: Flickr (Knowmadic news). 

The Gist

The Japanese financial giant is suspected to have played a significant role in the sudden rise and fall of tech stock prices. 

The List

  • Tech stocks in the United States have been incredibly volatile, with some seeing gains and losses of over 40% in a matter of days. 
  • It is believed that Softbank, one of the largest financial holdings companies, has played a role in this volatility. 
  • Softbank purchased billions of dollars in tech stock options - a non-binding agreement to buy a large amount of stocks at a certain price on a certain date from stock holders. 
  • This resulted in hundreds of billions of dollars in speculation, leading some to label Softbank a whale - a company which can influence the stock market. 
  • Softbank has lost over 10 billion in the past few days as investors begin to ask questions as to the company's role in tech stock prices. 

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