What is the difference between mutual fund vs ETF vs Stock?.

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02-03-2022
World Languages

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What is the difference between mutual fund vs ETF vs Stock?.

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sylviaalkis sylviaalkis · Answer 1 · 2022-03-02T16:32:43-05:00

Answer:

A mutual fund is a professionally managed investment fund that pools money from investors to purchase securities. The money then gets used to purchase stocks, bonds, and other securities. Mutual offers offer instant diversification.

An ETF is an exchange-traded fund that contains many stocks. When an ETF is bought, a stock is not purchased. An ETF contains many stocks but stocks cannot be made up of multiple ETF's.

A stock is the capital raised by a business or corporation through the issue or subscription of shares.

Explanation:

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