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Buying and Selling Stock

How long and short shares work

Recap

Before moving on to long and short options, let's review the concepts behind long and short stock:

Buying and Selling Shares of Stock

  • Long shares represent ownership of an asset
  • Long shares profit from a rising asset value
  • Short shares are loaned to the trader so that they may be sold in the market
  • Short shares profit from a declining asset value

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how the gears turn