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According to the SEC
By Staff Reporters
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Fractional Share Investing – Buying a Slice Instead of the Whole Share
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to help educate investors about investing in fractional shares.
What are Fractional Shares?
A fractional share is when you own less than one full share of a stock or other security.
Why Invest in Fractional Shares?
Fractional shares are a way to invest when you do not have enough money to purchase a full share of a particular stock. For example, if XYZ stock trades at $1000 per share, but you only have $100 to invest, fractional share investing would allow you to purchase a fraction of the XYZ stock ($1000/$100), or .1 shares.
How does Fractional Share Investing Work?
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CITE: https://www.r2library.com/Resource/Title/082610254
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Filed under: Glossary Terms, Investing | Tagged: fractional interests, fractional shares, SEC |
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