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What is the different between Share and Mutual Fund? |
What is the different between Share and Mutual Fund? In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. Share is nothing but u will dealing the shares individually with direct payment for a particular share. share is of a one particular company. Share, A mutual fund is a pool of monies that buys "shares" of individual companies. Ownership of a mutual fund is denominated in "shares". tHE DIFFERENCE BETWEEN SHARE AND MUTUAL FUND LIES IN THE MODE OF OWNERSHIP IN A COMPANY.tHE SHAREHOLDER BECOMES OWNER LIMITED TO THE EXTENT OF SHARES HELD BY HIM IN A PARTICULAR COMPANY.THE MUTUAL FUND HOLDER DOES NOT SPECIFICALLY OWN SHARES IN ANY PARTICULAR COMPANY,BUT HE LEAVES HIS MONEY AT THE DISPOSAL OF A TRUST,NAMELY A MUTUAL FUND WHO IS THE TRUSTEE AND OWNER OF THE FUND.hE IS ENTITLED ONLY FOR THE ALLOTMENT OF UNITS,WHOSE VALUE IS DETERMINED BY THE SUM TOTAL OF MONEY INVESTED BY THE FUND DIVIDED BY THE NUMBER OF INVESTORS.tHE SHAREHOLDER IS OWNER VIS A VIS THE COMPANY,WHEREAS THE MUTUALFUNDHOLDER IS ONLY AN INVESTOR IN THE FUND DESCRIBED ABOVE. look at this: there is only one difference in shares and mutual funds |
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