What is dave profit on his short selling investment

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Question - Dave believes that Mashed Potato Corporation's stock will drop in value. He borrows 125 shares from a brokerage firm when the stock was selling at $65 per share. When the stock's price dropped to $41 per share, he told the brokerage firm to buy 125 shares of Mashed Potato's stock. This stock was returned to the brokerage firm in replace of the stock he first borrowed. What is Dave's profit on his short selling investment?

Reference no: EM133139136

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