Short Sales of Stock

Assume you sold short 200 shares of GAP at $30 per share. What was your profit and rate of return, if after one year, GAP paid $.25 per share in dividends and you covered your short position when the price was $25 per share? Assume a 100% initial margin requirement.

Account at the time you sell the stock short: Assets and Liabilities

Account one year later: Assets and Liabilities

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/short-sales-of-stock-3e94