Common Stock Fund

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Dictionary Says

Definition of 'Common Stock Fund'

A mutual fund that invests in the common stock of numerous publicly traded companies. Common stock funds provide investment diversification and offer time savings over researching, buying and selling individual stocks. Common stocks are shares of ownership in a corporation that doesn't confer any special privileges, such as guaranteed dividends or preferred creditor status. Investing in a fund that specializes in common stock can provide cost savings if the fund's loads and management fees are lower than the commissions associated with buying and selling individual stocks.
Investopedia Says

Investopedia explains 'Common Stock Fund'

A common stock fund will always be specialized in some way. It might invest in all the companies in the S&P 500, or it might invest only in small-cap tech stocks or mid-cap dividend-paying value stocks, for example. The fund will usually name itself after its specialization and not call itself a common stock fund, because the term "common stock fund" is so broad.

Also, some funds call themselves common stock funds because they invest primarily in common stock (perhaps 80% of the fund's investments), but they might also invest in other types of securities (perhaps 20% of the fund's investments). Investors should look beyond the fund's name and see what it actually owns, when evaluating whether the fund is a good fit for their investment objectives.
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'Common Stock Fund'

  • 20 Investments: Common Stock | Investopedia

    http://www.investopedia.com/university/20_investments/5.asp
    20 Investments: Common Stock. ... Stock is sometimes referred to as shares, securities
    or equity. Simply put, common stock is ownership in part of a company. ...

  • 20 Investments: Preferred Stock | Investopedia

    http://www.investopedia.com/university/20_investments/15.asp
    ... a premium. While certainly not as popular as common stock, preferred shares
    are offered by a wide range of companies. It is important ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Common Stock ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/common-stock-benefits.asp
    ... 9.5 Common Stock Valuation Methods; 9.6 Mutual Funds; 9.7 Mutual Fund Benefits and
    Types; 9.8 Mutual Fund Classes, Sales Charges and Expenses. 10. ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Common Stock ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/common-stock-valuation.asp
    ... Stocks and Mutual Funds - Common Stock Valuation Methods. There are two
    basic approaches to valuing common stock. The first is the ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Mutual Fund ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/mutual-fund-classes-charges-expenses.asp
    ... SEC; FINRA; Mutual fund family; Shareholders of the fund. ... Learn about common time
    wasters and discover time-management tips that will get more ... Read More ยป; ...

  • Series 6 Study Guide - Investment Securities - Corporate ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-securities-preferred-stock.asp
    ... Advertisment - ExamPrep continues below. It is advantageous for the shareholder
    to convert to common stock above the conversion price. ...

  • 20 Investments: Closed-End Investment Fund | Investopedia

    http://www.investopedia.com/university/20_investments/3.asp
    ... funds actively traded on North American stock markets ... mainly dividends as income,
    and common shareholders who ... the capital appreciation of the fund's share price ...

  • CFA Level 1 Study Guide - Alternative Investments - Hedge Fund ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/hedge-fund-basics.asp
    ... of Global Industry Competition; 13.12 Analyzing a Company - Types of Stock; ... 15.3
    Common Characteristics of Futures and Forwards; 15.4 Fundamental Differences ...

  • Massive Hedge Fund Failures

    http://www.investopedia.com/articles/mutualfund/05/HedgeFundFailure.asp
    ... With convertible arbitrage, the fund manager purchases convertible bonds, which
    can be redeemed for shares of common stock, and shorts the underlying stock in ...

  • Series 6 Study Guide - Investment Companies - Mutual Fund ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/mutual-fund-marketing.asp
    ... 3.11 Corporate Securities: Common Stock; 3.12 Corporate Securities: Preferred Stock; ...
    of Mutual Funds; 11.5 Restrictions on Mutual Fund Operations; ...

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