Dictionary

fractional share

A portion of a stock's share. Fractional investing allows investors to buy a partial share of stock instead of a full share. It is helpful for those with small balances, those who make small deposits and those who have leftover cash in their account. Fractional share trading allows investors to acquire fractional ownership of stock trading at a price above $100 or $1,000 per share. Many brokers now allow the purchase of fractional shares.

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