How do fractional shares work?

How do fractional shares work?

One of the unique things about the US stock markets is that investors can own fractions of stocks unlike markets of countries like India. For example, you could own 0.05 of Apple stock. Our brokerage partner DriveWealth allows you to own as low as 0.0001 shares of any stock. This is an advantage for 2 main reasons: 


- You don't have to think in terms of"how many shares should I buy?". You can simply decide to invest a certain amount of money and the number of units to be allocated to you gets automatically calculated and would get credited to your account. For instance, if a stock is valued at $27* and you decide to invest $100 in it, you will get 3.70* shares.


- Many popular US stocks are more expensive than typical Indian stocks. While a single Apple stock is valued at over $200*, Google costs over $1,000* and Amazon costs more than $2,000*. Pepsi, Nike, Coke - all between $100* and $200*. Hence, with fractional stocks, you could effectively build a pretty diversified portfolio with small amounts of money.



*values mentioned herein are solely for illustrative purposes.

    • Related Articles

    • Do I get voting rights on fractional stocks? And what about dividends?

      DriveWealth utilizes a third-party vendor Say Communications, LLC (Say Communications) to facilitate the extension of voting rights to fractional shares. When you vote your interest in a fractional share, Say Communications will add the fractional ...

    • How much can I invest in US stocks from India?

      Currently, you can invest up to USD 250,000 every year in foreign stocks from India. This amount can change, subject to RBI guidelines. So your investments in US securities are also governed by the same limit. Foreign investments fall under clearly ...