Questions tagged [fractional-shares]

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Why don't some ESPPs allow participants to purchase fractional shares?

Allowing participants of an Employee Stock Purchase Plan (ESPP) to purchase fractional shares seems financially preferable to ESPP participants than not allowing them to do so, since purchasing ...
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Fractional shares [duplicate]

Some brokers offer fractional shares. So when i buy half share of stock (0.5) whose buy the rest half of share because in stock exchanges(e.g. nyse,nasdaq,bats) you can only exchange whole shares.
2
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1answer
95 views

Fractional share left after a reverse split

I have a short position. It reverse split and now I’m left with a fractional share. How do I buy to cover on E*Trade when it won’t accept the .5 share along with the others? Why wouldn’t they round ...
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0answers
48 views

With fractional shares available why do we still have stock splits? [duplicate]

I understand how before you would need to do a stock split when the company value surges since it is not easy for a "poor" diversified investor to have a $2000 stock in his portfolio, but ...
1
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1answer
284 views

Computing profits from fractional stock trading

If I buy $1 fraction of a share that's worth $25 per share, I own 4% of one share. Now, suppose that a share from said company is now worth $35 dollars. Do I still own 4% of that share? If so, my 4% ...
3
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1answer
823 views

Can reverse stock splits create fractional shares with infinitely repeating decimals?

Suppose I own 1 share of company A. Company A then decides to undergo a 1 for 3 reverse stock split. After the reverse split, I will own 1/3 shares (i.e. 0.333333... shares). The number of shares I ...
1
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1answer
159 views

Will I receive a company's annual reports if I own less than one share?

Shareholders are entitled to receive a company's annual reports, sometimes through the mail. Suppose I own less than one share (a fractional share, say, 0.8 shares) of a company. Will I be entitled to ...
0
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1answer
379 views

How do brokers make money from fractional shares trades?

Let's imagine the following scenario Day one: the price of the stock XYZ was 47.50 during the whole trading day. After clearing, the total number of shares users have is 24.5. Broker buys 25 shares ...
9
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1answer
3k views

How does ownership in fractional shares work?

I've been trying to find out some more information about fractional shares, and how they work. I understand conceptually, you own x% of a share rather than x "full" shares, but I'm curious about how ...