Investment accounts are designed to hold assets such as stocks, bonds, funds, other securities, and cash. Unlike bank accounts, the value of assets in an investment account can fluctuate, sometimes even declining. However, this risk of loss comes with the potential for higher returns, particularly over the long term.

For this reason, investment accounts are typically used to meet long-term financial goals, such as saving for retirement or funding education. It’s common for individuals to have multiple investment accounts, each aimed at fulfilling a different financial objective.

In this section, you’ll be introduced to the main types of investment accounts. You’ll learn how each type works, the regulatory bodies that oversee them, who is eligible to participate, and how to buy and sell the various investment products within each account. Additionally, we’ll offer tips on effective account management and how to avoid common pitfalls that could hinder your progress toward achieving your financial goals.