What is a mutual fund and how is it different than stock?

A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities, managed by a professional investment manager. Unlike individual stocks, which represent ownership in a single company, mutual funds provide diversification and typically have lower risk, as they invest in a variety of assets. Additionally, mutual funds are bought and sold at the end of the trading day at a price determined by the fund's net asset value (NAV), while stocks can be traded throughout the day on exchanges at fluctuating prices.