Define Short Sales. Make sure you explain what a long position and a short position are. Now assume that that you short 100 shares of AT&T (T) at $30 per share. Your broker has a 50% initial margin and a 40% maintenance margin on short sales. The value of stock borrowed that will be sold short is: $30 times $100 = $3,000. How does this look in the balance sheet? If the price of the stock falls to $20 per share, what is your new margin? Are you benefited or affected by the price decrease? How do you represent it in the balance sheet? Define Short Sales. Make sure you explain what a long position and a short position are. Now assume that that you short 100 shares of AT&T (T) at $30 per share. Your broker has a 50% initial margin and a 40% maintenance margin on short sales. The value of stock borrowed that will be sold short is: $30 times $100 = $3,000. How does this look in the balance sheet? If the price of the stock falls to $20 per share, what is your new margin? Are you benefited or affected by the price decrease? How do you represent it in the balance sheet