What are Fractional Shares?

A fractional share represents less than one whole share of a company. For example, instead of purchasing one complete US stock priced at $500, an investor may be able to purchase a fraction of that share for $50, subject to the platform’s availability and rules.

In this way, fractional shares in India can make expensive US stocks accessible to investors with smaller amounts. However, note that fractional shares may have different rules for order execution, transfers, dividends, and selling compared with whole shares. These conditions depend on the platform and the underlying market.

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