Fractional Shares/Fractional Share Trading

Fractional Shares/Fractional Share Trading

The ability to buy or hold less than one share of a stock. Fractional shares allow smaller investors to own slivers of stocks and thus opening up the ability to invest in expensive stocks like Amazon (NASDAQ: AMZN), Berkshire Hathaway (NYSE: BRKA), Booking Holdings, Inc. -formerly Priceline (NASDAQ: BKNG), Alphabet (NASDAQ-GOOG), Chipotle (NYSE: CMG); Autozone (NYSE: AZO). Investors participating in dividend reinvestment programs often receive fractional shares.

Fractional share holdings can also be used to buy partial shares of ETFs. Not all brokerage firms support trading or holding of fractional shares.