What are stocks and funds?

Hello, the stock is the ownership certificate issued by the joint-stock company. It is a kind of securities issued by a joint-stock company to all kinds of shareholders, as a shareholding certificate to obtain dividends and bonuses. Each share represents the shareholder's ownership of the basic unit of the enterprise. Every listed company will issue shares.

Fund: A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. Funds are the general name of institutional investors, including trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations.

From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds. In other words, the money is concentrated for stock trading. Of course, some investment directions are bonds and bills.

Stock is a kind of securities issued by a joint-stock company to shareholders to prove its shares. It can be used as transaction object and collateral, and it is one of the main long-term credit tools in the capital market. Compared with funds, it buys and sells stocks by itself.

The difference between the two:

1, different managers.

Equity funds are managed by fund companies. Stocks are managed by individual investors themselves. Different managers lead to different management levels and determine the final investment results. In general, fund companies are more professional than individual investors.

2. The rate of return is different. Usually.

The expected rate of return of stocks is higher than that of equity funds. However, it also faces greater risks than equity funds. In the long run, equity funds are less volatile and more stable, so relatively speaking, the risk expectation is smaller and the expected return is lower.

3. The elasticity of price fluctuation is different.

The stock goes up and down all day 10%. However, stock funds, under normal circumstances, the fluctuation of the fund's net value will not exceed 3% within one day. The reason is that equity funds are diversified. A fund usually buys dozens of stocks to reduce the influence of a single stock on the net price of the whole fund.

4. The factors that determine the price rise and fall are different.

In the long run, the factors that determine the fluctuation of stock price are mainly the fundamentals and performance of the company represented by this stock. The factors that determine the price fluctuation of stock funds are the price trend of dozens of stocks invested by the fund and the trend of the top ten stocks of the fund. Relatively speaking, the factors that determine the price trend of stock funds are more complex and comprehensive than those that determine the price trend of stocks.

5. Different investors.

Investors who invest in stock funds are generally called basic people, with a wider range of investors, and the number and scope of investors are more than those who make stocks, because many people who buy funds do not necessarily make stocks. Of course, some investors who do stocks do not necessarily buy funds.

6. The issuer is different.

Shares are issued by joint-stock companies, and non-joint-stock companies may not issue shares. Investment funds are issued by investment fund companies, not necessarily joint-stock companies, and it is stipulated that investment fund companies must be non-bank financial institutions, and one of their promoters must be a financial institution.

7. Different liquidity.

There are two kinds of funds, one is closed-end funds, similar to stocks, most of which circulate in the stock market, and the price fluctuates with the stock market. The other is an open-end fund, which can be bought and sold at the counter of the fund company at any time. Generally speaking, funds are more liquid than stocks.