Buying small amounts of stock, also known as fractional shares, allows investors to purchase portions of a company’s stock, regardless of the share price. This makes it possible for individuals with limited capital to invest in the stock market and potentially benefit from stock ownership, including potential capital appreciation, dividends, and voting rights.
Fractional shares have become increasingly popular in recent years due to the rise of online brokerages and the growing availability of fractional share trading platforms. These platforms allow investors to buy and sell fractional shares of any stock listed on major exchanges, often with no minimum investment requirements or trading commissions. Fractional share investing can offer several advantages, including: