eli5: How do brokerage accounts work?

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With any research I have done on google, people will explain investing with the assumption that people have a basic understanding on the different types of financial systems. *I don’t*. With a brokerage account, do I just put the money in and let it sit to accrue interest, or do I need to do anything else?

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No, you need to take action once you add money to a brokerage account… once there, you need to choose what investments to buy. If you want to buy individual stocks you can, or if you’re a novice, you could just buy some board index fund like Vanguard S&P 500 Index Fund. Depending on your account size and level of knowledge, you might eventually be able to add options or futures trading to your account.

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