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Short selling - maximum possible loss?
04-08-2014, 04:26 AM
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BrilliantHighlights14 Offline
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Short selling - maximum possible loss?
Needing some help on a homework problem.

"Suppose you short sell 300 shares of Facebook, now selling at $61 per share. What is your maximum possible loss?"

My answer is the maximum possible loss is infinite because loss comes from the stock price rising above the price at the time of the short sale and a stock price can infinitely rise.

Am I right?

Thanks in advance.
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Messages In This Thread
Short selling - maximum possible loss? - BrilliantHighlights14 - 04-08-2014 04:26 AM
[] - Donut Tim - 04-08-2014, 04:34 AM
[] - greg - 04-08-2014, 04:38 AM
[] - RAY - 04-08-2014, 04:42 AM
[] - A nobody - 04-08-2014, 04:51 AM
[] - The Old Guy - 04-08-2014, 04:58 AM

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