Comprehensive and Detailed Explanation From Exact Extract:
Long transactions involve buying a security with the expectation that its price will increase, while short transactions involve borrowing and selling a security with the hope of buying it back at a lower price. The feedback from the document states:
"Short transactions are a common feature of the capital markets, although not as common as long transactions – the transactions taken by investors who anticipate a price increase in the security. Investors who short sell stocks must first borrow the shares. They must also declare their short transactions."
[Reference:Chapter 7 – Types of Investment Products and How They Are TradedLearning Domain:Understanding Investment Products and Portfolios, ]
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