Can you buy less than 1 share of a stock?

Wed, Apr 23, 2008

Stocks

With some share prices so high some of the little guys can’t afford a full share. Is there the option to buy a portion of a share like you can in mutual funds?

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5 Responses to “Can you buy less than 1 share of a stock?”

  1. sergik12 Says:
    April 23rd, 2008 at 1:10 pm

    I’m going to go with NO lol. Some firms have 2 or 3 classes of shares, so if you can’t get the more expensive one then you buy the cheap one. BRK.A and BRK.B are good examples.

    Reply

  2. vadim.vintsevsky Says:
    June 10th, 2008 at 2:53 pm

    However, you can get fractions of stock. Sometimes when stock split they will be like 1.25 to 1 or something leaving you with fractions of stock.

    Reply

  3. pbucelwicz Says:
    June 11th, 2008 at 8:05 am

    Also when you choose to reinvest dividends, that would be a percentage of a share and not a full share most of the time right?

    Reply

  4. sergik12 Says:
    June 11th, 2008 at 9:28 am

    I think your broker will wait untill you have enough funds to buy a full share and your dividents will sit in cash.

    Reply

  5. sergik12 Says:
    June 11th, 2008 at 9:31 am

    The Definition for a Fractional Share is:

    Less than a single share of stock. Fractional shares often result from stock splits, stock dividends and similar actions. The fractional share is either paid out in cash or credited to a dividend reinvestment plan.

    Thus as I said before you don’t get to keep a fractional share.

    Reply


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