Stocks | Mutual funds |
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What is it? |
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A share in one company's profits. | A portfolio of investments. Active mutual funds are managed by a professional; index funds and ETFs typically track a benchmark. |
Best if |
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You want to build your own portfolio by picking and choosing to invest in specific companies. | You're after quick, easy diversification and want to invest in a large number of stocks through a single transaction. |
Fees |
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Trade commissions when bought or sold. |
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Learn more |
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More about individual stocks | More about mutual funds |