If you are interested in investing in the stock market, but do not have enough to purchase a whole share of stock, Fractional Shares may be for you. Fractional shares allow investors to buy a small percentage of a company that they would otherwise not be able to afford.Buying fractional shares can make sense in some situations. If you want to invest in a company but can't afford the whole share, purchasing a fractional share allows you to own part of the company while limiting your risk.For example, if you purchase a $100 stock that is trading at $50 per share and it drops 10% the next day, you will have lost only half of the money invested.A fractional share is a single unit of ownership in a security or commodity issued by any corporation, representing an equity stake less than one full share. Fractional shares are typically created when corporations undergo stock splits and dividends, or when companies issue DRIPs.
