Definition of Holder

Holder is an individual or corporation that owns a security. The holder of a security is also known as being long the security.

Applying "Holder" to Securities Exams:

Buyer, owner, holder and long are all synonymous. The buyer of a security is considered bullish because he wants the price of the security to rise. He also has limited risk, as the most he can lose is the amount of money he invested, but, in the case of equities, has unlimited upside potential; there is no limit to how high the price of a security can go.

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