Definition

Portions of a whole share, allowing you to invest smaller amounts in expensive stocks.

What to consider

  • Invest in portions of shares if full shares are too costly.
  • Review any fees associated with fractional trading platforms.
  • Monitor these investments as part of your overall portfolio.

Real world scenarios

  • Unable to afford whole shares of a popular tech company, Zoe bought fractional shares, allowing her to invest small amounts and still participate in the market.

Related terms

Investments & Retirement