Michael Ecke is a mortgage professional - NMLS # 1439805, entrepreneur, businessman, and founder of Prosperment. As a current employee of a Fortune 50 company, Michael is dedicated to ensuring the utmost attention to detail and quality control. Michael provides executive oversight and direction to Prosperment and its sister companies. Michael brings to his position the business foresight and acumen required as Prosperment continues its remarkable growth.
What are fractional shares?
Fractional shares are just what they sound like...fractions, or pieces of a whole share of stock, bond, or fund.
How do fractional shares work?
The price of a single share of stock can be expensive. Many stocks on the S&P 500* can trade for over $1,000 a share. A single share of Amazon will cost over $1,600.
Fractional investing allows you to purchase portions, or small slices of a share. This can be cost effective for investors who want to get into the market but who don’t have a lot of money to start out with.
You’re still investing in the company, but you don’t need to wait until you’ve got enough money to purchase a full share. It’s one option for getting started.
Say you want to purchase stock in an popular tech company that’s valued at $100 a share. But you only have $20. Fractional shares will allow you to purchase a fifth of a share of of that company or .20.
What’s the benefit of fractional shares?
For those who are looking to invest in the market but worry they don’t have enough to begin, fractional shares are a good way to get started. Even though you’re starting out small, you can still potentially earn a return on your investment. This is especially true if you’re starting out young. Little amounts can earn interest, and that interest can compound over time, and grow.
For those who are looking to invest in the market but worry they don’t have enough to begin, fractional shares are a good way to get started.
Fractional shares allow you to invest in exciting, innovative, and interesting companies without having to pay full share prices.
Fractional shares are a great way to start building your investment portfolio, on a budget that you can afford and grow over time.
Remember, you’re still a shareholder. You just hold fractions of shares. It’s always important to remember that investing involves risk.
How can I buy fractional shares?
You can purchase fractional shares of exchange-traded funds (ETFs) and some single stocks on different investment platforms like Stash. You can start with just $5.