A fractional share is a portion of one full share. You normally can’t buy fractional shares, but you may end up with them as a result of stock splits or dividend reinvestment plans. However, brokers can batch fractional shares together to create whole shares which can then be bought or sold.
Fractional shares and fractional exchange traded funds (ETFs) offer investors some benefits. They allow all cash to be invested and they allow investors to buy stakes in companies with high value shares.
