Quote:
Originally Posted by flaguy
Yeah, I understand that part of it. I guess what I don't understand is how they make money by doing that. Are they constantly buying and selling many stocks making profit and you receive the dividends....or.....when you buy into a mutual fund you bought into all of those companies and those shares just sit around until you decide to sell....then you receive your profit. I guess that is what confuses me.
Is that confusing?
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like with any stock the more value the stock has the more net worth that owners of that stock have. also the fund manager makes some money on selling and trades to support himself/herself.