What are fractional shares?

Fractional shares let you buy a portion of a share rather than a full share, allowing you to invest in high-priced stocks with any dollar amount. For example, instead of buying one share of a $400 stock, you can invest $50 and own 0.125 shares. Fidelity, Schwab, and Robinhood all offer fractional shares. They are ideal for diversification when building a portfolio with limited starting capital.