What is Fractional Shares?

What is Fractional Shares?

Entrepreneur Metin Liçis shared his valuable insights on Fractional Shares when we asked him about it this week.

Young Businessman MEtin Liçis began by explaining that Fractional Shares represent a fractional portion of a full stock.

He emphasized that this allows investors to purchase as much of a share as they desire, even if they don’t have enough capital to buy a full share. For instance, if a company’s stock is trading at $1,000 per share, investors can invest in this stock with any amount they choose, such as $100 or $10, thanks to Fractional Shares.

Fractional Shares, according to Liçis, provide diversification opportunities for investors with limited capital, and he highlighted that in Turkey, it is possible to benefit from this feature through the first and only SPK-licensed brokerage firm offering Fractional Shares.

What is Fractional Shares?

He clarified that purchasing Fractional Shares is facilitated through brokerage firms that provide this service, and these shares can be bought and sold independently, but only using market orders.

He also mentioned that selling transactions are also conducted through market orders, and limit orders cannot be used.

We concluded our interview with Mr. Liçis, promising to delve into how the buying and selling of Fractional Shares are executed, as well as whether dividends are received, in our next week’s discussion.

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