It is expensive to invest in big companies such as Amazon or Google. It may look as though these shares are reserved for wealthy individuals, with a share price of over $2,000 at the time this article was written.

However, you still have the opportunity to purchase these expensive stocks even if your budget is not large enough. A lot of investment platforms offer partial stock purchase options, also called fractional share investing.

An example of fractional ownership is buying one share and purchasing the remainder of it. You can get fractional shares without having to commit to a full share of a company. However, you will still be able to own these brands. for the long run can certainly pay off.

Kevin Driscoll is vice president for advisory services. “Fractional shares investing was a trading function, which brought Wall Street nearer to Main Street,” Driscoll said. Navy Federal Investment ServicesSend us your stories Select. Investors can also purchase stock based on their spending plans: buy specific dollar amounts of stocksExchange-traded Funds (also called EFTs)Driscoll says that then the trading platform determines which combination of shares is needed for the trade to be executed.

Fractional shares allow those with limited financial resources to access the market. diversify your portfolioYou can choose from a larger range of stocks, ETFs or other investments.

Charles Schwab, for example, lets investors purchase a fractional share of any stock listed in the S&P 500 through its Schwab Stock Slices™Program that allows you to purchase a slice of bread (fractional share), or as many as 30 slices (30 fractional share) starting at $5 per slice. Fractional shares from Schwab can be purchased for as little as $5 per slice. traded commission-free onlineSimilar to regular stocks.

SoFi Invest® is another broker option that offers fractional shares with zero trading commissions. Investors can start with just $5 and access more than 4,000 stocks and ETFs.

You may like the idea of being a part of a popular stock such as Amazon. thrilling, but, as always, investors should keep other factors — their investing goals, time horizon, risk toleranceAnd risk capacity — in mind before buying fractional shares.

Driscoll says that identifying the amount of money you want to invest will help everyone diversify their investment, whether it is $100 or $10,000.

An investor may buy fractional shares from different companies, but there is no limit on the amount of them. Driscoll states that investors should evaluate their portfolios based on the money they have invested in stocks or ETFs, and not how many shares are invested among different companies.

Investors with fractional shares should focus on how much money is invested in each company, and how diverse the companies are. Not having shares in more companies than others, but too many portfolios invested in one or two sectors of the market is a risk. Shopping index fundsETFs (ETFs) that track the larger market (i.e. the S&P 500) can help diversify your holdingsAnd protect against risk — many of the top brokerages and investing appsThese funds allow fractional share purchase.

Driscoll suggests that you choose an investment platform for fractional share purchases. One that does not charge fees for placing trades. Trading costs and fees for platforms tax implicationsHe explained that selling or buying partial shares can adversely affect overall returns.

We recommend that you do the same with all major investments decisions and strategies. speaking with a financial advisorTo help you.

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