Series 66: Buy And Sell Orders

Buy and Sell Orders

An order is a request to buy or sell a security. An investor who buys a security becomes the owner of the security. This is also called having a long position in a security. When an investor sells a security, he can sell long, which means to sell securities that he already owns. Or he can sell short, which means to sell securities that have been or will be borrowed. An investor sells short when he expects the price of the security to drop in the future. His goal is to sell at a high price and buy the shares back in the future at a lower price