Individual stocks and funds are two common types of investments, but they function differently.
Individual Stocks (Shares):

Definition: When you buy a stock, you purchase a small ownership stake in a single company. Your returns come from price appreciation and dividends if the company pays them.
Pros: Potential for high returns if you pick successful companies. You have control over which companies you invest in.
Cons: Higher risk, as your performance is tied to the success or failure of individual companies. It requires research and active management.

Funds:
Funds pool money from many investors to invest in a diversified portfolio of stoc...