130/30 Investment Strategies: Hedging in a Classroom Setting‪.‬

INTRODUCTION The typical investor buys and sells individual investment positions with the expectation of buying into a position "low" and then later selling the position "high." This approach to investing is called buying and selling "long." The investor purchases a stock or bond anticipating something will cause the investment to increase in value. Sales at a company could be increasing faster than expected. New and better company managers may have been brought on board. Interest rates in the economy could go up--or down. Many reasons can account for an investment to change in value.