investing

fractional shares

A portion of a whole share of stock, allowing investors to buy less than one full share.

Example

"With fractional shares, she was able to buy $10 worth of Amazon stock even though one full share cost $3,000."

💡 Memory Tip

FRACTIONAL = a FRACTION. You buy a FRACTION of one share instead of the whole thing.

Etymology

Fractional (a fraction of) + shares — buying a fraction of a full share.

Common Misspellings

fractional shairesfracional sharesfractional sares

Related Terms

stockbrokerage

See Also

sharesinvesting

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