Funds do not represent stocks. Funds and stocks are two different things, and there are obvious differences in issuers, investors, liquidity and income. Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. Stock is a part of the ownership of a joint-stock company and a certificate of ownership issued by a joint-stock company. It is a kind of securities issued by a joint-stock company to all shareholders as a holding certificate to raise funds and obtain dividends and bonuses.

Stock concept

Stock is a kind of valuable securities, which is a stock certificate issued by a joint-stock company to investors when raising capital, representing the ownership of the joint-stock company by its holders (that is, shareholders). Buying stocks is also a part of buying a company's business, which can develop and grow together with the enterprise.

This kind of ownership is a comprehensive right, such as attending the shareholders' meeting, voting, participating in the company's major decisions, collecting dividends or sharing the dividend difference. , but also bear the risks brought by the company's business mistakes. Getting regular income is one of the important reasons for investors to buy stocks, and dividends are the main source of regular income for stock investors.

Fund classification

According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.