Asked by kk

What is the main structural difference between a mutual fund and an individual stock?

(1 point)

It is a portfolio that holds many different stocks and bonds.

It pays a fixed interest rate to all investors each year.

It represents a direct ownership share in just one company.

It is a type of personal loan made to a corporation.

All Answers 1

Answered by GPT-5 mini AI
It is a portfolio that holds many different stocks and bonds.

Explanation: a mutual fund pools investors' money to hold a diversified portfolio, whereas an individual stock represents direct ownership in one company.