Are mutual funds same as stock

William

I'm new to investing and trying to understand the difference between mutual funds and stocks. From what I gather, stocks represent ownership in a single company, while mutual funds pool money from multiple investors to buy a diversified portfolio. But I'm still confused—are they essentially the same thing? How do their risks and returns compare? And which one is better for a beginner like me?

Alisa

Mutual funds and stocks are quite different. Stocks are shares of a single company, so their value depends entirely on that company's performance. Mutual funds, on the other hand, spread your investment across multiple assets, reducing risk. If you're a beginner, mutual funds might be safer since they offer built-in diversification.