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A stock fund, or equity fund, is a fund that invests in stocks, also called equity securities. [1] Stock funds can be contrasted with bond funds and money funds.Fund assets are typically mainly in stock, with some amount of cash, which is generally quite small, as opposed to bonds, notes, or other securities.
There are various types of index funds available, each with its own unique strategy and focus. From broad market index funds to market cap index funds, there is a wide range of options for ...
ETFs can be asset allocation funds, which include different asset classes rather than just one. They are usually, but not exclusively, implemented using a fund-of-funds structure. The most common ones use fixed strategies, which can be described with terms like "aggressive" or "conservative", denoting more in stocks and more in bonds, respectively.
Stock funds are likely to perform better long term than bond funds, but bonds may outperform stocks over shorter time periods. During periods of rising interest rates, bond prices will fall.
An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. [1] [2] [3] ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars.
Compared to preferred stock, common stock’s profit potential tends to come more from growth in share price over time rather than dividends. Common stock has higher long-term growth potential ...
Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of ...
Mutual funds are a popular way to invest, and if you have a 401(k) or other workplace retirement plan, you probably own some. But mutual funds can be misunderstood. Here are four common myths ...