Suppose I decide to short 100 shares of stock in Alibaba Group (ticker: BABA). This stock is currently selling at $300 per share. I borrow 100 shares from my broker and sell these shares in the stock market, receiving $30,000. At the end of 1 year the price of BABA has risen to $336. I buy back 100 shares for $33,600 and give those share to my broker to repay the original loan. Because the stock price increased, this has been a favorable transaction for me. I made a profit of $3,600. True False