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Short Selling vs. Long Position

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In today's environment, is short selling better than long position (holding a stock for appreciation)? Why or why not?

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Solution Summary

This solution of 371 words explains the difference between short selling and long position with regards to the appreciation value of a stock, it also identifies the better option in the current economic climate.

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The Fed and other institutions have taken a hard stance against the recent recession/depression and are working towards a solution. 2009 will likely continue to be a bad year economically, but overall, I personally feel that we are at or near the trough of the ordeal.

Short selling benefits the trader who 'borrows' a stock that he or she believes will decline in value and when it does, buys it at the lower price. The shorter then returns the stock from the trader from which it was originally borrowed. The shorter benefits ...

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