MONEY OBEDIENCE

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A stock is a certificate that gives you partial ownership of a company, so when you buy stocks you buy a share of that company. When you invest in stocks or the stock market, you have a number of options. You can buy individual stocks or a stock fund. Individual stocks are shares in a single company, and stock funds combine individual shares into bundles that are meant to smooth out the risk associated with any one individual stock. It is beyond the scope of this system to discuss individual stocks. As an investor, you have to take into consideration many variables if you are to make well thought-out buy and sell decisions.

Instead of buying individual stocks you may choose to invest your money in stock funds. Stock funds are pools of money from investors like you, which are invested by a professional fund manager on your behalf. These fund managers use your money as well as co-investor's funds to buy stocks according to a certain policy spelled out in documents issued to you by the management company. The fund manager charges you a management fee for managing your invested money.