What is a fractional share?

Instead of buying a whole share of stock, you can buy a fractional share, which is a "slice" of stock that represents a partial share, for as little as $5. For example, if a company's stock is selling at $1,000 a share and you were buying $200 worth of it, you would own 0.2 (20%) of a share.

What is a fractional stock split?

Stock splits are a similar concept. They divide current shares into a multiple of new shares. While each individual stock is worth less, the total value of the shares remains the same. Companies generally do this to make it easier to invest in their stocks, something fractional shares tackle as well. How does investing in fractional shares work?

How to buy fractional shares?

If you want to buy fractional shares, compare online brokerages and investing apps before you sign up to ensure the one you choose allows it. Also, take a look at the list of stocks or ETFs available as fractional shares. Finally, make sure there aren’t additional commissions or fees for fractional share investing.