It is now easier than ever to invest with small sums of money. That's good news for investors, particularly if you like high-priced stocks. Ordinarily, you would have to shell out the entire stock price since you couldn't buy a portion of a share. If that was too steep, you could hope the company would conduct a stock split that would lower the price.
That's changed, helping small investors. Several brokerage houses, such as Fidelity Investments, Charles Schwab (NYSE: SCHW), and Robinhood Markets (NASDAQ: HOOD) offer customers the ability to buy fractional shares, which are portions of a company stock, rather than a full share.
Better still, those companies, and others, offer commission-free trades. That means you shouldn't have to shell out extra money to the brokerages to buy and sell stocks, making it even more compelling for small investors.
Source Fool.com