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What is the difference between a mutual fund and a single stock?
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The primary difference between a mutual fund and a single stock is that a mutual fund is a type of investment that consists of a pool of funds from many investors to purchase a variety of securities, such as stocks, bonds, and other investments. On the other hand, a single stock is the purchase of just one stock from a single company. Additionally, mutual funds are professionally managed and their performance is based on the fund's overall portfolio, whereas individual stocks are typically more volatile, as their performance is based solely on the company's financial performance and the general market conditions.