GLOSSARY TERM
Fractional Shares
Fractional shares let you buy part of a share instead of a whole share.
What does this mean in practice?
This makes investing easier when a share or ETF unit is expensive. Instead of needing enough cash for one full unit, you can invest a fixed amount of money and receive only part of it. This can be especially helpful for beginners who want to start with small monthly amounts.
Example
Instead of buying one whole share worth €400, you invest €50 and receive a fraction of that share. Your money still enters the market, even though it is not enough for a full unit.
Why it matters
Fractional shares can make it easier to start early and invest regularly. They lower the practical barrier to getting started, especially when investing small amounts over time.
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