Trading, Accounts & Prohibited ActsQuestion 203 of 398
An investor who is 'long' 200 shares of a stock has which market position and outlook?
a.Owns the shares and profits if the price rises (bullish)
b.Has borrowed and sold the shares and profits if the price falls (bearish)
c.Has no economic exposure to the stock
d.Owns the shares but profits only if the price falls
Explanation
Being long means owning the security; the investor benefits when the price rises and is considered bullish. Being short means having sold borrowed shares, profiting when the price falls (bearish).
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