3 Reasons to Invest in Fractional Shares

If you're an investor or you hope to become one, you need to know about fractional shares. Fractional shares are partial shares of a company's stock: Instead of owning one or more full shares of the stock, you own a fraction of one. In the past, investors generally would end up with fractional shares only after a stock split since brokers only allowed the purchase of full shares. But that's changing now as big-name brokers make it possible to purchase fractional shares directly.

Thanks to this shift, you can specify how much money you want to invest in a particular company (rather than how many shares you want to buy) and buy a small portion of a share if your cash investment isn't enough for a full one. Fractional shares have big benefits for investors, and there are three key reasons you should seriously think about adding them as an investment option. 

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Source Fool.com