Basic knowledge of STOCK---Fund

1. The difference between stock and fund

don't put the eggs in the same basket . Buying stocks is like putting an egg in the same basket, and once the basket has turned upside down, the whole basket of eggs is finished. Similarly, if you use your money to buy a stock or multiple stocks, once the company's share price falls, the money you buy will be lost.

Put the eggs in different baskets . You take out a sum of money, for the purchase of funds, there will be a special fund investment funds to buy a variety of stocks or bonds or other, such as 10% buy a-share, 20% B shares, 40% buy C shares, 20% buy D shares, 10% buy e shares, after a period of time according to the proportion of income, so scattered to buy, Portfolio investment, avoiding the risk. And there are professional investment managers to help you buy, you will be more likely to benefit than the profits of the stock purchase.

2. Types of funds

Depending on the classification, the fund can be divided into many different types, and now introduces several common fund types:

2.1 Index Funds (Index Fund)

The use of passive investment, the selection of an index as a copycat object, in accordance with the criteria of the index, the purchase of the index of the securities market in all or part of the securities, in order to obtain the same level of income with the index.

(1). the index, the standard and poor 500, is a stock index of 500 listed companies in the United States, which is created and maintained by Standard and Poor's company.

(2). Nasdaq index, the stock price average, which reflects the change in the Nasdaq stock market, has a base index of 100. Nasdaq's listed companies cover all high-tech industries, including software, computers, telecommunications, biotechnology, retail and wholesale trade.

(3). DIJA Index (Dow Jones Indices), often referred to as the Dow Jones index, may refer to the first group of Dow Jones Industrial Average (Dow Jones Industrial Average) in four groups. It is a representative company stock listed on the New York Stock Exchange and is composed of four stock price averages.

2.2 Closed Fund (CEF, close end Fund)

2.3 Exchange Traded funds (ETFs, Exchange Trade Fund)

2.4 Mutual funds (MF, mutual Fund)

Basic knowledge of STOCK---Fund