Such fractional shares are a plus for investors who prefer to invest in terms of dollars. Partial shares allow all of your money to be invested. Buying partial shares is also a convenient way to invest in high-priced stocks. With partial shares, you can invest in companies like this without having to pony up so much cash all at once.

Open an account with a brokerage firm that offers investment plans that allow purchase of fractional shares. Traditional brokers might not offer this option. However, several discount and online brokers do.

Two examples are Buy and Hold and Sharebuilders. An added advantage is that these accounts feature low minimum investments and transaction fees. Select a stock and an investment plan that meet your needs. Each month, all of the money you deposit, minus a transaction fee, will be used to buy a partial share.

None of your cash will sit idle in the account. You can arrange for automatic debits from your checking or savings account to make buying partial shares even more convenient. Buy partial shares directly from the company instead of going through a broker.

Many firms offer direct stock purchase plans DSPP through their transfer agents. Some companies even pay purchase fees for you. Sign up for a dividend reinvestment plan DRIP for stocks you already own. Brokerage investment plans that offer partial share purchase and DSPPs usually offer dividend reinvestment as options as well. Based in Atlanta, Georgia, W D Adkins has been writing professionally since He writes about business, personal finance and careers.

Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.

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Definition of Fractional Stocks How to Calculate the Implied Value Per Share of Common Equity. Step 1 Open an account with a brokerage firm that offers investment plans that allow purchase of fractional shares.

How To Buy Google (Or Any Pricey Stock) For $50 A Month

Step 2 Select a stock and an investment plan that meet your needs. Step 3 Buy partial shares directly from the company instead of going through a broker.

Why don't investors buy stock just before the dividend date and sell right afterwards?

Step 4 Sign up for a dividend reinvestment plan DRIP for stocks you already own. References 3 Buy and Hold: How Fractional Shares Can Make You Rich Sharebuilder: Why It Pays to Think Like a Fisherman Bankrate. How to Buy Stock Directly from a Company. About the Author Based in Atlanta, Georgia, W D Adkins has been writing professionally since Related Articles Prices After a Stock Split Diluted Vs.

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