![]() ![]() ![]() Instead, brokers that allow fractional shares make it possible for any investor - even those with a few dollars - to specify how much they want to invest. Someone with only $200 no longer needs to wait for Nvidia to split in order to buy a stake in the company. See, fractional shares allow anyone to buy fractions of shares, or partial shares, even if they don't have enough investment capital to purchase a full share. However, thanks to fractional shares, it's becoming less and less likely that a split will have even this effect. Still, the reduction in the per-share price can sometimes have a short-term impact on the stock price due to the company's shares seeming more accessible. ![]() Some investors also perceive a stock that costs $200 per share as being "cheaper" than one that costs $800, even though that's not a good way of assessing whether a company's shares are worth their price. Now, companies sometimes split their shares in hopes of driving up demand since more people can theoretically afford to buy shares that cost $200 each instead of $800. Fractional shares reduce the impact of stock splits ![]()
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