Gone are the days wherein you need a big sum of money to invest in the US stock market. In the world of investing, there’s a new buzzword that’s making the financial markets more accessible to everyone: fractional shares.
What Are Fractional Shares?
Traditionally, when you wanted to invest in a stock, you had to buy whole shares. However, fractional shares allow you to own a piece of a share, breaking down the barrier for those who might not have the funds to buy a full share of high-priced stocks like Amazon or Google. It’s like buying a slice of your favorite pizza instead of the whole pie!
How Do Fractional Shares Work?
Imagine you want to invest in a company whose stock is trading at $1,000 per share, but you only have $100 to invest. With fractional shares, you can invest that $100 and own a tenth (10%) of a share. The platform you use will handle the complex math behind the scenes, ensuring you get the proportionate benefits of any price movements and dividends.
Where can I buy Fractional Shares?
Most platforms offer fractional shares nowadays. I use eToro to buy US shares. Though I do have an account with Shari-Shari as well, I haven’t used it. Both offer fractional shares.
Kuya Well’s corner
In addition to ETFs, “fractional shares” is one of the features that I like when it comes to investing in the US stock market. Alas, we don’t have any platforms that offer fractional shares in the Philippine stock market. Can you imagine if we have that same feature for our very own local stock market?
Galaw-galaw BPI Trade, COL Financial, BDO Securities. Baka naman gusto nyo iintroduce ang fractional shares para di tayo napag-iiwanan? And yung mga subsidiaries nyo, baka naman pwede rin kayong mag-introduce ng ETF?