Source: https://mochatrade.com/learn/glossary/fractional-shares

# Fractional shares
URL: https://mochatrade.com/learn/glossary/fractional-shares
Last modified: 2026-10-17

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](https://mochatrade.com/learn), so sizing discipline has to come from you. A [contract on the price](https://mochatrade.com/support/what-is-a-perpetual-contract-and-does-it-expire) works the same way.

## Related terms

- Brokerage account: https://mochatrade.com/learn/glossary/brokerage-account
- Custodian: https://mochatrade.com/learn/glossary/custodian
- Overnight session (24-hour stock trading): https://mochatrade.com/learn/glossary/overnight-session
- Closing auction (official close): https://mochatrade.com/learn/glossary/closing-auction
- ADR (American Depositary Receipt): https://mochatrade.com/learn/glossary/adr
- Stock split (US): https://mochatrade.com/learn/glossary/stock-split