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What is your return on investment from a short sale of stock?

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You short sell 100 shares of a stock at $60 per share and there is 50% initial margin requirement. The price drops to $55 per share, what is the value of your account equity on the account balance sheet? What is your percentage margin? What is your return on the investment?

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Solution Summary

This solution calculates the value of account equity, percentage margin, return on the investment for a short sale of stock in an attached Excel file.

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You short sell 100 shares of a stock at $60 per share and there is 50% initial margin requirement. The price drops to $55 per share, what is the value of your account equity on the account balance sheet?

What is your percentage margin?

Data
Share price= $60.00
Number of shares= 100
Initial ...

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