Doris 
Investing in the stock market has always been a great way to grow your wealth. However, for small investors, buying shares of a company can be challenging, as the price of a single share can be quite high. This is where fractional shares come in. Fractional shares are a game changer for small investors, as they allow them to own a piece of a company for a fraction of the cost of a full share.
What are fractional shares?
Fractional shares are simply a portion of a share of a stock. For example, if a share of Amazon costs $3,000, a fractional share could be $100 or any other amount less than the full share price. Fractional shares are made possible by the rise of online brokers, who allow investors to buy and sell stocks in real-time, and at a fraction of the cost of traditional brokers.
Why are fractional shares important for small investors?
For small investors, the high cost of buying a single share of a company can be a significant barrier to entry. Fractional shares make it possible for investors to own a piece of a company they believe in, without having to invest a large amount of money upfront. This means that small investors can diversify their portfolio by investing in multiple companies, rather than being limited to just one or two.
Benefits of fractional shares for small investors
- Low Cost: Fractional shares are an affordable way for small investors to invest in their favorite companies.
- Diversification: Fractional shares allow small investors to diversify their portfolio by investing in multiple companies.
- No Need to Buy Full Shares: Fractional shares allow investors to own a piece of a company without having to buy a full share.
- No Minimum Investment: Fractional shares allow investors to start investing with as little as $1.
- Ease of Access: Fractional shares can be bought and sold quickly and easily online through a variety of platforms.
Drawbacks of fractional shares for small investors
- Limited Availability: Not all companies offer fractional shares, so investors may not be able to invest in all the companies they want.
- No Voting Rights: Fractional shares do not come with voting rights, which means investors do not have a say in company decisions.
- Higher Fees: Some brokers charge higher fees for buying and selling fractional shares, which can eat into investment returns.
Fractional shares are a game changer for small investors, as they provide an affordable and accessible way to invest in the stock market. While there are some drawbacks to fractional shares, the benefits far outweigh the negatives. Small investors can now diversify their portfolio and invest in multiple companies with ease, thanks to the emergence of fractional shares.
