After researching a software company's common stock, Sarah Jackson is convinced that the stock is overpriced. She

Question:

After researching a software company's common stock, Sarah Jackson is convinced that the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares. At the time of the sale, a share of had a value of $35. Six months later, the were selling for $23 a share and Sarah instructs her to cover her short transaction. Total commissions to buy and sell the stock were $120. What is her profit for this short transaction?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...