I would really appreciate if you answer the question with an easy to understand example
In: Economics
Basic share investing involved buying a share (a piece) of a company, like Coca Cola.
Bill is really smart at choosing good companies, so he sets up a “fund” and you can buy a share of his fund. Bill’s “fund” then buys some Coca Cola and some Tesla and some Pizza Hut shares. This is a Mutual Fund.
ETF stands for “Exchange Traded Fund”. Bill makes his fund available to the open market via a stock “exchange” where any members of the public can buy and sell (trade) shares in the fund.
A Mutual Fund that is not an Exchange Traded Fund would just have more traditional methods of buying into it. Maybe you call the fund, get paperwork, make a bank transfer, etc. The fund manages the records of how many members own however many shares.
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