If You Short a Stock and the Price Goes Up

question 59

True/False

If you short a stock and the price goes up, your net equity value will go up.

---

Definitions:

Understated

Describes financial statements or figures that are reported as less than their actual values.

Purchase Price

The amount paid or to be paid by the buyer to acquire a good, service, or asset.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from total revenue.

Costing Method

The technique or approach used by a business to determine the cost associated with a product or project.