Even Tesla Can Be a Penny Stock With Fractional Shares

Investing in stocks can be a fantastic way to build wealth, but it can also be expensive. Some stocks cost several hundred or even thousands of dollars per share, which is out of many investors' budgets.

For example, Tesla (NASDAQ: TSLA) is trading for nearly $700 per share at the time of this writing. Building a well-diversified portfolio requires investing in at least 10 to 15 different stocks. If you're paying hundreds of dollars per share, you can easily spend thousands of dollars just getting started in the stock market.

If you're trying to invest on a budget, it may be tempting to opt for penny stocks. Penny stocks are very inexpensive investments, often trading for $1 or less per share. However, these stocks can be incredibly risky, and there's a much better alternative.

Source Fool.com