Economics Mutual Funds Questions
The main difference between a mutual fund and a stock is that a mutual fund is a pool of funds collected from multiple investors, which is then managed by a professional fund manager who invests in a diversified portfolio of stocks, bonds, or other securities. On the other hand, a stock represents ownership in a single company and is bought and sold on stock exchanges. While mutual funds offer diversification and professional management, stocks offer direct ownership and potential for higher returns but also higher risks.