What is a Fractional Share?

What is a Fractional Share?

  1. A fractional share is a portion of a stock that is less than one full share.
  2. A fractional share is usually a result of corporate actions such as stock splits or bonus shares.

RELATED FACTS: -

  • Fractional shares cannot be traded in the market and cannot be bought or sold.
  • The company appoints a trustee to buy back the fractional shares from investors, and the payments are credited to the primary bank account of the client.