Stock is a kind of ownership certificate. A joint-stock company distributes shares to shareholders, and shares can be bought and sold. Stocks may have voting rights, usually in proportion to the investment of each shareholder. Not all stocks are equal. For example, some types of stocks can be issued without voting rights, or they can be issued with enhanced voting rights, or they can get profits or liquidation income before or after other types of shareholders.

The difference between stocks and funds

1. Funds invest their own money in institutions, and stocks invest their own money in institutions.

2. Stock trading gains are exclusive and risks are borne alone, while fund gains are exclusive and risks are single.

Advantages of the fund

1. Compared with what individual investors can afford, * * * provides diversified investments or funds to obtain more kinds of investments.

2. Invest in economies of scale with the Group.

3. Monthly contribution will help investors to increase their assets.

4. Funds are more liquid because they are less volatile.

5. Investors get professional investment management services.

Advantages of stocks

The first is the right to vote. Ordinary shareholders can participate in internal corporate governance by voting. Common stock has a small ownership in the issuing company. For individuals, investing in the stock market is a relatively direct way to generate income. The investment in common stock may increase indefinitely, and the potential loss is limited to the original amount of the investment.

Generally speaking, it is better to choose a fund that wants to manage money soundly, and it is better to choose a stock that wants to make a lot of money.