To know how money works, it is important to understand how financial markets work. Such investments can be done through Investing in Stocks, or Investing in Mutual Funds.
INVESTING IN STOCKS & MUTUAL FUNDS
A Stock is an instrument that signifies equity ownership in a corporation and represents a proportionate claim on a company's assets and profits.
A mutual fund is money pooled from a certain number of investors. Each fund has specific mandate or purpose and a professional fund manage who invests the money based on the specific strategy and goal of the fund.
video credits to Coach Jhon Abud