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Buying and Selling Stock

How long and short shares work

Long Shares

Recap on Stock Ownership

Long shares are what most people are familiar with when it comes to investing. Any shares that you
are long. They represent ownership of the asset, and benefit from a rise in value. They lose when the value of the product decreases. As a long shareholder, you will receive any voting rights and
payments granted by the company.

Dividends

Many investors like owning stock simply for their dividend payments. Dividends are cash payments distributed on a per share basis to shareholders. They can be periodic, one-off, or none at all. Dividends are not required and vary in size from product to product. In order to receive a dividend, you must own shares by a certain date called the
Keep in mind that the amount of the dividend is removed from the price of the stock, so net profit due to the dividend will actually be $0.

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how the gears turn