Long Stock

Being “long on a stock” means that you own shares of that stock, with the expectation that its price will increase in value over time.

Ownership: When you go long, you are actually purchasing and holding the shares of a company. You become a shareholder.

Bullish Outlook: This position reflects a “bullish” outlook, meaning you believe the company’s prospects are good and its stock price will rise.

Profit: You profit if you later sell those shares at a higher price than you paid for them. It’s the classic “buy low, sell high” strategy.

Risk: The main risk is that the stock price might fall, in which case you would incur a loss if you sell for less than your purchase price. Your maximum loss is typically limited to the amount you invested (the stock can’t go below zero).

Essentially, being long on a stock is the most common and traditional way to invest in the stock market, aiming to benefit from a company’s growth and success. It’s the opposite of being “short” on a stock, which involves betting on a price decline.