Fractional share investing allows individuals to purchase a portion of a stock or other security, rather than needing to buy a whole share. This investment approach makes it possible to own expensive stocks with a smaller amount of money, making investing more accessible to a broader range of people. Fractional shares are typically offered by online brokerage platforms, which facilitate the buying and selling of these partial shares. This method enables investors to diversify their portfolios more effectively by spreading their investments across a wider array of stocks, even with limited funds. Fractional share investing is particularly beneficial for new investors and those looking to invest small amounts regularly, such as through dollar-cost averaging.
