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You open your IRA with cash. You send the custodian a check. Then you give an order to buy stock in the
IRA. The price of the stock and the commission are deducted from the cash in the account. If you sell the stock, the cash stays in the account, again with a commission deducted. The only thing you can add to the account apart from $2000 a year (assuming your earned income is more than that) is a custodial fee, if any, which you may pay from outside the account.
You can't buy stocks from outside the account to put in, and you can't put stock you already own into the account. Why? Well, those are the rules.
Good luck and keep Foolin! Chris

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