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3. Define Short Sales. Make sure you explain what a long position and a short position are. a. Now assume that that you short 500

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3. Define Short Sales. Make sure you explain what a long position and a short position are. a. Now assume that that you short 500 shares of AT&T () at $50 per share. Your broker has a 40% initial margin. How does this look in the balance sheet? b. Your broker has a maintenance margin of 30%. If the price of the stock falls to $30 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

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