Dominique BroadwayFounder & CEO, Finances Demystified · Turning Knowledge Into Generational Wealth

Unlocking Stock Investment: Whole vs Fractional Shares Explained! #shorts

Name: Unlocking Stock Investment: Whole vs Fractional Shares Explained! #shorts
Uploaded: 2024-12-20T15:30:04+00:00
Duration: 1 min 1 s
Channel: Dominique Broadway
Description: In this short instructional video, the speaker defines a stock as a share of ownership in a publicly traded company and explains how investors…

20 Dec 2024 · 1 min

Watch on YouTube

1:01

In this short instructional video, the speaker defines a stock as a share of ownership in a publicly traded company and explains how investors traditionally could only buy whole shares. The narrative then introduces the modern capability to purchase fractional shares, made possible by technological advances, allowing investors to buy a portion of a share with smaller amounts of money. An example using Apple stock priced at $100 illustrates how an investor with $25–$50 can acquire 0.25–0.50 of a share, highlighting the flexibility and accessibility of fractional investing.

Chapters

So for those of you that don't know, a stock is essentially when you purchase a share of ownership or have a vested interest in a company. And you can purchase stock in any company that is a publicly traded company. Now, for years, most people or historically I would say, you could only— when you invested into stocks, you could only purchase a whole share, right? And now, with technology because times have changed, you can purchase whole shares of stock by paying the share price, or you can purchase what we call a fractional share, meaning you can buy a fraction of the share. So example, let's say if Apple stock is trading at $100, but you're like, hey, I only have about $25, $50 to start investing with, then cool, you can do that. You can purchase $50 of Apple, and it's going to give you 50% or 0.50 of that share. So you can purchase a whole share, or you can purchase fractional shares.