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A brokerage account is an investment account where you can buy and sell various investments like stocks, bonds, and mutual funds.
In Depth
Think of a brokerage account like a bank account for your investments. You deposit money into it, and then you can use that money to purchase different types of investments. Unlike a retirement account, a standard brokerage account doesn't have special tax advantages for retirement savings, but it offers more flexibility in when you can access your money. It's a common way for individuals to build wealth over time by investing in the market.
Example
Sarah opened a brokerage account to start investing in a few technology stocks she had researched.