Final answer:
Your maximum possible gain from short selling 200 shares of Tuckerton Trading Company, ignoring transaction costs, is $10,000.
Step-by-step explanation:
Short selling is a strategy where an investor borrows shares from a brokerage firm and sells them in the market, hoping to buy them back at a lower price in the future. In this case, you sold 200 shares of Tuckerton Trading Company at $50 per share.
To calculate your maximum possible gain, you need to consider the difference between the selling price and the price at which you can buy back the shares. Since you short-sold the shares, your maximum possible gain is the difference between the selling price and zero, which is $50 per share. Multiply this by the number of shares you sold (200), and your maximum possible gain is $10,000.