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Fractional Shares - Why We Love Them and How to Buy Them
Your 2-Minute dose of Genius!
Sika Republic
September 12, 2023
If you're new to investing, you might not be ready to purchase a whole share of a company's stock just yet. That's where fractional shares come in to make things easier. Fractional shares allow you to own a piece of a share without breaking the bank. This means even if you're new to investing, you can get started with a small sum of money.
In today’s 2-Minute Masters we'll explain why fractional shares are a smart investment option and how you can buy them.
Mix It Up
Diversification is a big win with fractional shares. It's like spreading your investment eggs into different baskets, which helps lower your risk. Instead of having to buy whole shares in a single company, all your hopes aren’t on just one stock. Fractional shares make it more affordable to spread your cash across different companies in various industries.
Lazy Investor Approved
Don’t have time to dive deep into the world of stock research? Fractional shares let you buy small pieces of shares in different companies, creating a diversified portfolio without having to pour hours into analysis.
Access to Top Stocks
Ever wanted to invest in a big-name company but felt the price tag was way out of reach? Fractional shares allow investors to purchase pricier stocks that may have been out of reach otherwise. With fractional shares, you can own a portion of a share at a much lower cost than purchasing a whole share and build up on the amount you own over time.
How to Get Your Slice
To start buying fractional shares, you'll need to open an account with a brokerage firm that offers them. Some popular options include Charles Schwab, Fidelity and Robinhood. Once you've opened an account, you can search for the stock you want, and the broker will give you the option to buy a whole or fractional share. Choose the fractional option, enter the amount you want to invest, and complete the purchase.
Today’s Takeaway:
Fractional shares are a great option for investors of all levels. Embrace the affordability, convenience, diversification, and access to big-ticket stocks. Remember to select a broker that offers fractional shares and get ready to embark on your investment journey!