In finance, a long position in a financial instrument means the holder of the position owns a positive amount of the instrument. The holder of the position has the expectation that the financial instrument will increase in value.
Ownership
When an investor holds a long position in a stock they are buying a share of ownership in a company. Depending on the type of Stock purchased this can entitle the shareholder to voting rights at shareholder meetings or dividend payments.
Security
In terms of a security, such as a stock or a bond, or equivalently to be long in a security, means the holder of the position owns the security, on the expectation that the security will increase in value, and will profit if the price of the security goes up. Going long
See also
- Short (finance)
- Position (finance)