Allen Gold thought Exxons common stock was far overpriced at $45 a share; therefore, he executed a

Question:

Allen Gold thought Exxon’s was far overpriced at $45 a share; therefore, he executed a short sale on 100 shares. How did his stockbroker assist in arranging this short sale, and how much profit (ignore commissions) will Al make (or lose) if:
(a) Exxon goes down to $40 a share,
(b) It goes up to $50 a share?
Does Al have to put up any money for this short sale? Would you recommend short selling as a routine practice over the long run? Explain.
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...