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What is stock and mutual fund? how they differ from each other? |
What is stock and mutual fund? how they differ from each other? A stock is a share of one single company. For example, a Google stock would be one share of google. A mutual fund is many stocks bundled together. A mutual fund could contain google stock, apple stock, intel stock etc. A stock is one company and a mutual fund is the stocks of many companies bundled together. stockes simple difine as a share of a companies ownership which is issued to public to raise funds for the company. by buying the stock, you will be also a part of the company. mutual fund is made up of stocks and bonds. you can buy individule stock in a company or you can buy into a mutual fund which owns stock in many companies. if you have stock in one company and it goes belly up then you lose your money but if you are in a mutual fund and one of the companys stock goes under its no big deal cause the fund has stock in more companies. i am in a mutual fund and there are many to choose from. i'm in the franklin income fund class a stock is a single share in company and mutual fund is the mixture of blue chips of company shares |
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