What is long purchase? Illustrate with an example.

Long Purchase refers to the buying of securities (such as stocks, bonds, or commodities) with the expectation of holding them for an extended period (typically more than one year) to benefit from long-term capital appreciation, dividends, or interest income. It is a fundamental strategy in investment where investors aim to capitalize on market trends, economic growth, or company performance over time.

Example:

Suppose an investor buys 100 shares of Company X at ₹100 per share on January 1, 2080, expecting the stock to rise due to company growth. After 2 years, the stock price increases to ₹150 per share, and the investor sells the shares, earning a profit of ₹5,000 (₹50 gain per share × 100 shares).