Fractional shares refer to the ability to purchase a portion of a share of stock rather than having to purchase a full share. This can make it easier for individuals to invest in stocks, especially high-priced ones, as it allows them to invest smaller amounts of money.
One of the main benefits of fractional shares is that it allows for greater diversification of an investment portfolio. Instead of having to save up a significant amount of money to purchase a full share of a high-priced stock, investors can purchase fractional shares and invest in a variety of stocks. This can help to spread out risk and potentially increase returns.
Another benefit of fractional shares is that it allows for more flexibility in terms of investment size. This can be especially useful for younger investors or those with smaller amounts of money to invest. It also allows for more frequent investments, which can help investors to take advantage of market opportunities as they arise.
Fractional shares also offer more accessibility to retail investors, it can provide access to stocks that otherwise would be too expensive to invest in.
Fractional shares can be purchased through a variety of platforms, my platform of choice is Webull. Deposit $100 or more to receive free stocks too! They offer the ability to buy a fraction of a share and also provide access to a wide range of stocks and ETFs.
It’s important to note that while fractional shares can be a great way to invest in the stock market, they also come with the same risks as any other stock investment. It’s important to do your own research, understand the risks and have a well-crafted plan before investing.
In conclusion, fractional shares allow investors to purchase a portion of a share rather than having to buy a full share. This can make it easier for individuals to invest in stocks, especially high-priced ones, as it allows them to invest smaller amounts of money. It also allows for greater diversification of an investment portfolio, more flexibility in terms of investment size and more accessibility to retail investors.
