Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.
A fractional share refers to a portion of equity as opposed to buying one whole share.
Equity refers to the amount of money that would be returned to shareholders if all company assets were liquidated and debt paid off. It is important to note that equity is the most common way of assessing a company’s financial status.
Fractional shares offer one of the easiest ways of investing, especially for beginners in investing and investors who can’t afford whole shares. It is a new way of becoming a shareholder of several companies.
A more diversified portfolio is better because investors can balance out the risks. Much like investing in the open market, investors in fractional shares need to be equally cautious.
0 Comments
No comments yet. Be the first to get the conversation started. Here's some food for thought:
Do you have any thoughts?