US Life Common Stock Fund - 1974 dated Investment Stock Certificate
Inv# IV1039 Stock
Stock. A stock fund, also known as an equity fund, is an investment vehicle that invests in stocks, which are also referred to as equity securities. It can be contrasted with bond funds and money funds. Unlike bond funds, notes, or other securities, stock funds typically have a majority of their assets in stocks, with a relatively small amount of cash. These funds can be either mutual funds or exchange-traded funds. The primary objective of an equity fund is to achieve long-term growth through capital gains, although historically, dividends have also been a significant source of total return.
Equity funds can be distinguished by several characteristics. They may have a specific investment style, such as value or growth. They can invest in securities from a single country or multiple countries. Additionally, they can focus on a specific size of company, including small-cap, large-cap, and so on. Funds that involve stock picking are considered actively managed, while index funds strive to closely replicate specific stock market indices.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.
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