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Most Roth IRA custodians will allow you to make a large variety of investments within the account. If at a brokerage, yes stock trades are allowed. You may also own bonds, CDs, mutual funds, and probably lots more. And you may freely trade these as long as the fees and commissions are paid with money from the account.

The profits you make do not incur taxes in the year you do the trade. In a conventional IRA you do pay taxes at ordinary rates on the contents of the IRA when you withdraw them usually at age 59-1/2. These taxes are paid at ordinary rates--not at capital gains rates. With a Roth IRA no taxes are due at retirement--not even capital gains. Taxes would be due only if you break the rules when you take money from the account. Wait to age 59-1/2 and the money is tax free.
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