Stock Trading and Other Things

What's the difference between stock brokers and mutual fund companies?

Public Comments

1. Stock brokers, though the job is no longer existed, buy the stock for you. They recommended stocks if you are interested in. You gave them the money, they purchased the stock and charged you commission. You have the say as to which individual stock to buy or not to sell. Mutual fund company gets a pool of money from different people and use that money to buy a diversity of stocks, you have no say about it. They also charge you commission by the time you buy (front end load), or by the time you sell (back end load), or commission gradually decreased over time (defer load) or even no commission (no load).

2. A Stock broker is an individual employed by a registered broker/dealer and is licensed to communicate with and assist the general public with their investment objectives. Brokers who work for bank owned brokerage firms are salaried while regular stock brokers are paid commissions.
Stock brokers help clients in selecting investment produces, and/or strategies.

A mutual Funds is a corporation registered with the SEC to invest monies from the general public.
By combining monies the fund can invest in products of such quantities that it can and will hopefully be profitable for the shareholders (the investing public).
Before a fund sells any product, it must first have the approval of the SEC and fully define to the SEC how the fund will invest any monies for their shareholders.