Orders and trading · updated October 21, 2026
What are fractional shares and how do you buy part of a share
Fractional shares let you buy part of a share, for example 0.1 of a share, instead of a whole one. That way you can put $100 into a company whose stock costs $2,000.
Fractional shares formula
- Amount invested
- How much you want to put into the company.
- Price of one share
- The exchange price, converted into your currency.
Worked example
A share costs $2,000 and you want to invest $250.
If the stock rises 10%, your fraction is worth $275. You also get dividends, in proportion.
Worth knowing
Fractions are useful for monthly investing with small amounts and for very expensive stocks. Not every broker offers them, and not on every exchange.
When fractional shares can fool you
Moving to another broker: fractions usually cannot be transferred; they have to be sold. Voting rights: many brokers give you no vote on fractions. Some brokers only offer fractions through CFDs; check that you own the real share.
Related terms
Learn it in the Academy
Questions about fractional shares
Do I get dividends on fractions?
Yes, in proportion to the fraction. With 0.5 of a share, you get half the dividend.
Can I buy fractions on every exchange?
Exchanges themselves only trade whole shares. Brokers create fractions from their own holdings, so availability depends on the broker; check how they are held.
These explanations are for information only. They are not a recommendation to buy or sell.
Back to the glossary