Fractional shares — meaning explained

Fractional shares: Buying part of a share.

What it means

If a share costs $400 and you have $20, fractional investing lets you buy 1/20th of it. This is how teens can own expensive companies with pocket money.

Category

Basics — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.