Long position
An options position where a person has executed one or more option trades where the net result is that they are an "owner" or holder of options (i. e. the number of contracts bought exceeds the number of contracts sold). Occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock." |
Similar financial terms
Long-term bondsBonds with a maturity of more than 12 years.
Creditors, long
This is all liabilities payable more than one year after the Balance Sheet date. This includes provisions and deferred taxation, loans and debt, including convertible debt, repayable more than one year after the Balance Sheet date.
Current portion of long-term dept
Those liabilities that are payable within the next 12 months, including accounts and taxes payable, and the current portion (12 months' payments) of notes payable and current liabilities.
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
Long-term liabilities
Amount owed for leases, bond repayment and other items due after 1 year.
Long-term financial plan
Financial plan covering two or more years of future operations.
Long-term debt ratio
The ratio of long-term debt to total capitalization.
Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.
Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.
Long-term assets
Value of property, equipment and other capital assets minus the depreciation. This is an entry in the bookkeeping records of a company, usually on a "cost" basis and thus does not necessarily reflect the market value of the assets.
Long-term
In accounting information, one year or greater.
Long straddle
A straddle in which a long position is taken in both a put and call option.
Long run
A period of time in which all costs are variable; greater than one year.
Long hedge
The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price.
Long coupons
(a) Bonds or notes with a long current maturity. (b) A bond on which one of the coupon periods, usually the first, is longer than the other periods or the standard period.
Long bonds
Bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.
Long
One who has bought a contract(s) to establish a market position and who has not yet closed out this position through an offsetting sale; the opposite of short.
Overnight position
Trader's long or short position in a currency at the end of a trading day.
Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or derivative security.
Short position
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought to close out the transaction. This technique is used when an investor believes the stock price will go down.
Position diagram
Diagram showing the possible payoffs from a derivative investment.
Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position and the seller of a commodity is said to have a short position .
Open position
A net long or short position whose value will change with a change in prices.
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.
Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures.
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
Composition
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
Position liquidation
The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering.
