Write the differences between mutual funds and stock.

The major differences between mutual funds and stock are as follows −

Mutual fundsStock
  • Similar to shareholders and they own the fund

  • Pool of money collected from investors

  • There is no possibilities of original issues

  • There no nominal value

  • Have net asset values

  • Partially paid or sometimes fully paid

  • Low preference

  • Traded once in a day

  • Managed by fund manager

  • Value depends on net asset value

  • Commission can be paid at both entry and exit or either one

  • Ownership of a company

  • Two stocks can have the same value

  • There is a possibility of original issue

  • There is some nominal value

  • Some definitive numerical value

  • Always fully paid

  • High preference

  • Trade throughout the day

  • Managed by investors

  • Value depends on price per share

  • Commission paid when stock is traded