Fractional shares
Fractional shares let you own part of one share, say 0.1 of a $500 stock, through a broker that holds whole shares and splits them on its own books. They remove the floor that NSE lot sizes quietly set on your position size, so sizing discipline has to come from you. A contract on the price works the same way.
Go on
In MochaLearnTake the free MochaLearn course on US marketsRelated terms
- Brokerage accountA brokerage account is an account with a registered broker that records the securities you own while a custodian holds…
- CustodianA custodian is the institution that holds securities or assets for a broker's clients, kept apart from the broker's…
- Overnight session (24-hour stock trading)The overnight session is US stock trading through the American night, which is the Indian working day, on a handful of…
- Closing auction (official close)The closing auction is the single matched trade at 1:30 AM IST, 2:30 AM in winter, that sets each US stock's official…
- ADR (American Depositary Receipt)An ADR is a receipt a US bank issues for shares of a foreign company it holds abroad, so the stock trades in New York…
- Stock split (US)A stock split divides each share into several, so a 10-for-1 split turns one $1,000 share into ten $100 shares at the…