Created on October 24, 2023
Investing typically involves multiple layers of financial instruments and accounts. At the foundation, you have a brokerage account, which serves as your gateway to the financial markets. Within this account, you can invest in various assets, including stocks. Stocks represent ownership in individual companies and are bought and sold in the stock market. Additionally, you can invest in funds, such as mutual funds or exchange-traded funds (ETFs), which pool money from multiple investors to invest in a diversified portfolio of stocks or other assets. These funds are managed by professionals and offer diversification benefits. So, the layers of investing start with your brokerage account, where you can choose to invest in individual stocks or diversify by using funds, ultimately aiming to potentially grow your wealth over time. ℹ️ Investing involves risk, including possible loss of principal. No investment strategy can ensure financial success or protect against losses. Diversification does not guarantee profit nor is it guaranteed to protect assets. Before investing, please consider your investment objectives and risk tolerance and how they correspond to the expenses, charges, and risks (including the possible loss of principal) of the product you are purchasing.