Definition: A fractional share (or stock slice) is a portion of stock that is less than one full share.

At Public, you can become an owner in your favorite companies by investing any amount of money, regardless of the share price.

Why Fractional Shares?

The stock market is one of the biggest drivers of prosperity in history. But the truth is, what’s supposed to be the public markets, have historically been the markets for the few.

Wealth creation has been locked up behind private banks, expensive financial products, and expensive stocks (sometimes $1,000+). Public.com was one of the first companies to offer real-time fractional shares of stock. They do this by slicing stocks into tiny bits so that everyone can afford to own a piece of a public company, regardless of their wealth..

Whether you want to invest $1 or $1,000, fractional shares give you the opportunity to choose how and where you invest, without worrying about share prices.

What does that mean?

A fractional share means if you wanted to buy $5 worth of a stock that costs $800 per share, you can make that happen by buying a slice for $5. That fraction of a share remains yours until you sell it. When you want to sell a slice you can simply enter how much of the value you want to sell. (You can still always buy/sell full shares of a stock on Public if you so choose.)

Fractional shares not only let you invest in your favorite companies at a more manageable buy-in price they can also increase your flexibility by giving you the power to use those funds to how you want. You can invest $1,000 into one company, or $1 into a thousand companies—the choice is yours.

Do fractional shares trade differently?

The short answer is: no,not really.

Long answer: Fractional shares can be bought and sold just like regular stocks and ETFs on the Public app. Your ownership “status” of a fractional of a stock is the same as if you’d sprung for a whole share, with the only difference being the size of the slice you own. While Public does offer Market Orders, Limit Orders, and Stop Orders, when you buy or sell a slice of stock, the order will always be a Market Order.

What about dividends?

When you buy a fractional share of dividend stock, which is a stock that pays out dividends (usually quarterly to investors), you will earn dividends at the exact same rate of your ownership as dividends for full shares. This means that if you own a half share of stock, you’ll receive half the dividend value of a full share when it’s paid out.

If you ever want to set up automatic dividend reinvestment, Public allows you to set it and forget it by opting to do so in the Settings.

How to buy fractional shares on Public

Investing in companies you believe in should be intuitive, which is why apps like Public make buying fractional shares straightforward. .

Within Public’s free investing app, you can visit a stock page, select the Trade button, select Buy, and choose the dollar amount you’d like to invest. Public offers sliced stocks for thousands of publicly-traded companies and ETFs

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