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Shares is a more specific term that can refer to the ownership of a particular company or a type of financial instrument, while stocks is a more generic term that can refer to a slice of ownership of one or more companies or a collection of investor holdings or a portfolio.
In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts.
Stocks represent shares in individual companies while mutual funds can include hundreds or even thousands of stocks, bonds or other assets. You dont have to choose one or the other, though. Mutual funds and stocks can both be used in a portfolio to help you grow your wealth and meet your financial goals.
Investment fund shares are shares of an investment fund if the fund has a corporate structure. They are known as units if the fund is a trust. Investment funds are collective investment undertakings through which investors pool funds for investment in financial and/or non-financial assets.
Class A shares typically impose a front-end sales charge, which means a portion of your money isnt invested and is instead paid in part to the brokerage firm selling you the fund. Lets say you spend $1,000 to purchase Class A shares, and the fund imposes a front-end sales charge of 5 percent.
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Mutual funds are primarily retail products, which gather assets from vast numbers of individuals who have limited balances to invest. Institutional accounts gather assets from a limited number of clients who have millions or even billions of dollars to invest.
Investor shares may also be managed individually in a focused investment fund. Institutional shares, on the other hand, are a class of mutual fund shares available for institutional investors. Institutional mutual fund share classes typically have the lowest expense ratios among all of a mutual funds share classes.

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