6 ms·
Longs are not "people holding stock". A long is purchased on borrowed capital paid back with interest. It is a much riskier play.
by staplers 8y ago
Longs are not "people holding stock". A long is purchased on borrowed capital paid back with interest. It is a much riskier play.
- riphay 8y agoLong is short-hand for anyone benefiting from the price of the stock rising. This includes people who own the stock outright, have bought on credit, own call options, have sold put options, etc.
- bduerst 8y agoYeah, long is slang for long term investor: https://www.investopedia.com/terms/l/long.asp https://www.investopedia.com/terms/l/long.asp
- zodiac 8y agoThe link you posted doesn't support that etymology; there are some proposed etymologies here https://english.stackexchange.com/questions/145376/what-is-the-origin-of-long-and-short-in-finance https://english.stackexchange.com/questions/145376/what-is-t...
- whatok 8y agoThat's definitely not standard industry convention. Previous poster's interpretation is correct.