What type of position indicates that an investor has purchased securities with the expectation that their value will rise?

A long position represents the purchase of securities with the expectation that their value will increase over time. When an investor takes a long position, they are optimistic about the asset's future performance and are looking to benefit from potential appreciation in price. This kind of strategy is foundational in investing, as it reflects a bullish outlook where the investor aims to sell the securities later for a higher price than what they paid.

In contrast, a short position involves selling securities that the investor does not own, with the expectation that they can be repurchased at a lower price in the future to profit from the decline. A neutral position generally indicates that the investor does not have a strong inclination toward either buying or selling the securities, essentially signaling a lack of conviction about future price movements. Margin positions refer to borrowing funds from a broker to trade; while this can amplify both gains and losses, it does not inherently indicate a bullish or bearish outlook.

Taking a long position is, therefore, about the belief in future growth and is a central concept in trading and investment strategies.