The fractional share investment and trading tool allows one to purchase a fraction of one share at the time when one can not afford (or does not have the means) to pay for the price of one share.
For example, a stock X is $1000 per share, but one can not afford to spend $1000. At the same time, one wants to just own a fraction of that share.
Normally, most brokers do not offer that option. Either one buys one, two, three or more shares in whole or one stays out.
Well, that was the case in the old days. Not anymore.
Nowadays, an investor or technical trader can buy 0.10 or 0.27 or 1.34 or any other odd number of share just by using the fractional share investing.
Have you been dreaming about owning some of the juicy dividends paying companies or blue-chips stocks? Today, one can buy and hold a fraction (I mean any fraction of one share) of Apple Computers, Google, Amazon and so on at ridiculous prices.
Did you ask really? Yes.
With the fractional share, one can spend as little as one Dollar or less to purchase a fraction of a big or expensive share.
On this day of February 2020 when I am writing this article, one can buy 0.10 of one share of Virgin Galactic at $2.5. That is 0.10 x $25 = $2.5.
Now, you understand what is a fractional share trading and investing. Both technical traders and investors can take advantage of the fractional share dealing.
The old excuse of saying: "I can not afford that stock, it is too expensive" is now unacceptable.