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To earn a profit, you sell things for more than you paid for them. You've heard "buy low, sell high" correct? That's what they mean.
If you go long on a stock, you buy the stock, wait till it goes up in price and then sell it. This is a nice safe way to invest; if you bought with cash (there is a way to buy stocks on credit and this is a subject for another time) you can't lose any more than you spent, and you can really only lose that much if the company goes out of business.
Going short is a different matter. You take possession of stock that's not yours and immediately sell it. You then wait till it goes down in price enough to suit your tolerance for risk, buy it back, and return it to its owner. If you want to lose money fast, short stock and be wrong.
What else can I help you with?
How can one assess what stocks to buy?
It is very important for someone who is going to begin buying and selling stocks to assess which stocks to buy. Some are for long term holding, and others are for short sale. The investor needs to understand their investing goals. Individuals need to assess their own stocks, however for help on assessing stocks they can check sites like: etoro, Fidelity, or Vanguard.
How can I avoid short-term capital gains tax on stocks?
To avoid short-term capital gains tax on stocks, you can hold onto your stocks for more than one year before selling them. This will qualify you for the lower long-term capital gains tax rate, which is typically more favorable than the short-term rate.
What is the meaning of hedge fund and why they are called hedge funds?
The name of hedge fund originally comes from the fact that hedge funds were able to buy stocks long and sell stocks short, therefore hedging the market risk. So if the market went up or down, the fact that it had long and short positions enabled them to potentially have positive returns regardless of market action. Over time, hedge funds have evolved and they are involved in a myriad of investment strategies and the long-short funds are only a subset of all hedge funds, so that currently the name is a misnomer.
What is the basic difference between a stock and a bond?
1)stocks are in units, whereas bonds are for number of years. 2)stocks are the number of units for the companies whereas bonds can be for short or long term
Why are stocks high risk?
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
Can open end mutual funds short stocks?
The vast majority of mutual funds do not short stocks. Whether it is an open end or closed end fund is irrelevant. If a fund can short stocks, this strategy will be described as a "long-short" fund or something similar.
How can one assess what stocks to buy?
It is very important for someone who is going to begin buying and selling stocks to assess which stocks to buy. Some are for long term holding, and others are for short sale. The investor needs to understand their investing goals. Individuals need to assess their own stocks, however for help on assessing stocks they can check sites like: etoro, Fidelity, or Vanguard.
Is wealth maximization long term or short term?
Buying stocks is normally a long-term investment strategy. The idea is that since there is always inflation, the value of your stocks should go up with time.
Is shareholder wealth maximization short term or long term?
Buying stocks is normally a long-term investment strategy. The idea is that since there is always inflation, the value of your stocks should go up with time.
How can I avoid short-term capital gains tax on stocks?
To avoid short-term capital gains tax on stocks, you can hold onto your stocks for more than one year before selling them. This will qualify you for the lower long-term capital gains tax rate, which is typically more favorable than the short-term rate.
What is the meaning of hedge fund and why they are called hedge funds?
The name of hedge fund originally comes from the fact that hedge funds were able to buy stocks long and sell stocks short, therefore hedging the market risk. So if the market went up or down, the fact that it had long and short positions enabled them to potentially have positive returns regardless of market action. Over time, hedge funds have evolved and they are involved in a myriad of investment strategies and the long-short funds are only a subset of all hedge funds, so that currently the name is a misnomer.
What is the basic difference between a stock and a bond?
1)stocks are in units, whereas bonds are for number of years. 2)stocks are the number of units for the companies whereas bonds can be for short or long term
What is better for retirement stocks or bonds?
If you're a long way from retirement, stocks (riskier) is probably better. As you get closer to retirement, high grade, short term bonds (less risky) are better.
What is the ISBN of Stocks for the Long Run?
The ISBN of Stocks for the Long Run is 9781556238048.
When was Stocks for the Long Run created?
Stocks for the Long Run was created in 1994.
What is the meaning of short-term money?
The meaning of short-term money basically means that the money won't last long. The money is only there for a short period of time.
Does a cylinder have rotational symmetry?
yes... going long and short
