In short: Individual stocks represent direct ownership in a single business, offering concentrated return potential alongside the risk of severe company-specific losses. Exchange-traded funds bundle hundreds or thousands of shares into one security, providing broad diversification across industries and countries in a single trade, which significantly dampens single-company volatility.
Stocks or ETFs: there is no answer that is right for everyone. On these pages you can see side by side how they work, what risk comes with them and what they cost, so you can decide what fits you. We only explain; nothing on this website is personal advice.
Start here
What is a stock?
What you own, how the price is set, how stocks pay, what a split is and what happens when a company fails, step by step.
Stock or ETF?
What a stock is, what an ETF changes and what spreading does and does not do about the risk of one company, with figures from research and index factsheets.
What does buying stocks cost?
What a €100 monthly buy and a €1,000 one-off buy cost at five brokers, plus spread, currency costs and TER.
Common questions from beginners
What is a stock?
A small piece of ownership in one company. Whoever holds it is a part-owner and can share in the profit through a dividend, though neither a dividend nor a price rise is promised. Read the full answer.
How is the price of a stock set?
By buyers and sellers on an exchange, which agree on a price all day long. How the price comes about.
What happens to my money if a company fails?
Shareholders are paid last, so the shares can become worthless. What happens if a company fails.
How do I buy a stock, and what does it cost?
Through a broker, with costs for the order, the spread and, outside the euro, currency conversion. How to buy and a worked cost example.
What is the difference between a stock and an ETF?
A stock is one company; an ETF is a fund holding many. What an ETF changes.
Look up
Came across a word you do not know? See the stock terms. For a question about the calculator, see the FAQ about stocks. To see what costs do over the years for an ETF, try the ETF Calculator.
This is general information, not tax or investment advice. For your own situation, consult a qualified tax adviser, a financial adviser licensed by the AFM (the Dutch financial markets authority) or the Belastingdienst.