What are fractional shares?
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A fractional share is a portion of a whole share of stock that is less than one full share. It allows you to own a piece of a company's stock based on the amount of money you are willing to invest. Many brokerages offer the option to buy fractional shares, which can be helpful if the price of a full share is too high to afford in a single transaction. Just like with full shares, fractional shares entitle you to dividends and other rights of equity ownership.
A fractional share is a portion of a whole share of stock that is less than one full share. It allows you to own a piece of a company's stock based on the amount of money you are willing to invest. Many brokerages offer the option to buy fractional shares, which can be helpful if the price of a full share is too high to afford in a single transaction. Just like with full shares, fractional shares entitle you to dividends and other rights of equity ownership.
Fractional shares can make it easier to invest in a company by allowing you to buy a smaller amount of a share, like USD 10. This can be especially useful for removing barriers to entry for investing, as often, whole share prices are prohibitively high.
For example, if a share in a company costs USD 500, you can invest in the company by buying a proportional amount of the share for a smaller amount of money, as low as USD 10 with Xapo Bank, using fractional shares.
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