Several illustrations have been provided explaining a long position and how it c

Question

Several illustrations have  been provided explaining a long position and how it contrasts with a short  position. College tuition has even been used as an example! Prepare at least one  example of a long position and one example of a short position and back it up  with explanations. How are these examples similar to or different than taking a  long or short position on stocks? How do price expectations influence people's   behavior? Evaluate the risk of your imagined short and long positions, using  common sense ideas of risk.

Explanation / Answer

Prepare at least one example of a long position and one example of a short position and back it up with explanations

. Long Position : The buying of a security such as stock, commodity or currency, with the expectation that the asset will rise in value.Keyword here is: rise in value. This is the opposite of

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