A sophisticated investor, B. Graham, sold 250 shares short of Amwell, Inc. at $31 a share. The price of the stock subsequently fell to $26 before rising to $46 at which time Graham covered the position (that is, closed the short position). What was the percentage gain or loss on this investment? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places.
A sophisticated investor, B. Graham, sold 250 shares short of Amwell, Inc. at $31 a share. The price of the stock subsequently fell to $26 before rising to $46 at which time Graham covered the position (that is, closed the short position). What was the percentage gain or loss on this investment? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places.
Short selling refers to the practice of selling a financial instrument, such as stocks or securities, that the seller does not actually own. In a short sale, the seller borrows the asset from a third party (typically a broker or another investor) and sells it in the market with the expectation that its price will decline. The seller aims to buy back the asset at a lower price in the future and return it to the lender, profiting from the price difference.
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