Fractional shares are a portion of an equity stock that is less than one full share. They may result from stock splits, dividend reinvestment plans, or similar corporate actions. Fractional shares allow investors to buy a portion of a stock based on a dollar amount rather than the number of shares, making it easier to invest in expensive stocks and to diversify even with small amounts of money
. This feature is offered by some online brokerages, allowing investors to buy and sell fractional shares through major brokerage firms
. For example, Schwab Stock Slices and Fidelity offer the option to buy fractional shares for a set dollar cost
