Some share prices run into hundreds or even thousands of dollars. Fractional shares let you invest by dollar amount instead, so $25 buys you $25 worth of a company, whatever its share price.
What you get
A fractional share gives you the same proportional returns and dividends as a whole share. If you own 0.1 of a share and the company pays a $2 dividend, you receive $0.20.
Why it helps
- Start investing with small amounts.
- Build a diversified portfolio even with a modest budget.
- Invest a round dollar amount every month.
This guide is for education only and isn't investment advice. Investing involves risk, including the possible loss of principal.
