What is the primary purpose of a brokerage account?

The primary purpose of a brokerage account is to facilitate the buying and selling of stocks and other securities. It serves as a platform where investors can trade financial assets such as equities, bonds, and mutual funds. When you deposit funds into a brokerage account, you can access various investment opportunities in the stock market and execute trades based on your investment strategy or research.

This account allows individuals to manage their investment portfolios actively, making decisions on when to purchase or sell assets to aim for capital gains or returns over time. By using a brokerage account, investors can leverage the services of brokerage firms, which can provide valuable resources, tools for research, and customer support to enhance the investing experience.

In contrast, the other options do not reflect the primary function of a brokerage account. Saving for retirement typically involves specific accounts like IRAs or 401(k)s. Managing credit cards pertains to handling debt and payment methods, which is unrelated to investing. Lending money to businesses usually involves financial instruments like bonds or loans rather than the buying and selling of stocks within a brokerage account.