What Are Long Stocks?

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Going long on a stock means that a person believes that their stock will succeed in the long term, and thus they are a buyer of that stock. Discover why long stocks are part of an optimistic view of the investment market with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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Video Transcript

This is financial adviser Patrick Munro talking about what are long stocks? Well going long as opposed to going short in the stock market are two different things. Going long on a stock means that you really believe that that stock is going to do good for the long term and that makes you a buyer of the stock. However if you're going short on stock, you believe that that stock is going to fail anytime soon and you buy in at a point and as the stock goes down, you make more money. Long on a stock is an optimistic way of looking at the investment market and it's probably the best way for someone who's a beginning investor to look at the overall market with a sense of optimism that in the long term they'll have more than they started with. This is what we mean by what are long stocks. You have to make sure that you study the company, make sure of it's direction, it's goals, it's plans, just like yours are solid and sustainable and it's only then that you want to part with your hard earned dollars and say that you are long on a particular stock. This is financial adviser Patrick Munro talking about what are long stocks.

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