Fractional shares allow investors to purchase a portion of a stock rather than a full share, making investing in expensive stocks more accessible. This innovative approach is ideal for those looking to start investing with limited funds.
Steps to Invest in Fractional Shares
- Choose a Brokerage:
- Many platforms like Robinhood, Schwab, and Fidelity offer fractional investing.
- Compare fees, ease of use, and available stock options.
- Set Your Budget:
- Decide how much you want to invest, even if it’s as little as $5.
- Select Your Stocks:
- Research companies and choose stocks aligned with your financial goals.
- Use tools like stock screeners to evaluate performance.
- Place an Order:
- Enter the dollar amount you want to invest, and the brokerage will calculate the fraction of the share you own.
Fractional shares empower new investors to start small, diversify their portfolio, and gradually build wealth.
