Elizabeth Short Sold 600 Shares of Stock at $62 a Share

question 97

Multiple Choice

Elizabeth short sold 600 shares of stock at $62 a share. One month later, she covered the short at a price of $58. What was her total dollar return on this investment?

• A) -$2,400
• B) -$1,800
• C) -$920
• D) $1,800
• E) $2,400

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Definitions:

Temporary Regulations

Rules issued by government agencies for a limited period to address immediate issues or situations.

Revenue Ruling

An official interpretation by the IRS on how the law is applied to a specific set of facts.

Tax Rate Structure

Describes how tax rates progress from low to high depending on income levels, assets, or transactions, varying from progressive, regressive, or proportional.

Progressive

A taxation system in which the tax rate increases as the taxable amount increases, often applied to income tax.