What You Should Know About Mutual Funds
The two most common ways to invest in stocks are by purchasing shares in individual companies or investing in a fund. As with most finance-related things, there are pros and cons to each. Here are three things to know about mutual funds before deciding to invest in them.
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Mutual funds and exchange-traded funds (ETFs) are similar in that they are both funds containing a mix of different companies, but there are fundamental differences. To begin, ETFs are traded like individual stocks; you can use your brokerage account to buy shares of an ETF just like you would an individual company. ETF prices change throughout the day, and as long as the stock market is open -- which is from 9:30 a.m. to 4 p.m. EST -- you can purchase shares.
Source Fool.com
