Fractional Share

Market Mechanics

A fractional share is ownership of part of a share rather than a whole one.

The exchange does not offer this, your broker does: it holds whole shares and records your slice in your account. It makes it easier to buy expensive stocks with small amounts, but at some brokers fractional shares cannot be transferred to another broker and order types may be limited.

Example

With the stock at $400, $100 buys 0.25 shares; if the stock rises 10%, your slice is worth $110.

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