What are US fractional shares?
The smallest trading unit on US stock exchanges is 1 share, but on some brokers' platforms, shares can be split into less than 1 share for trading. These are called US fractional shares.
Typically, brokers that support fractional share trading in US stocks allow trading in minimum increments of one ten-thousandth (0.0001) of a share. For example, if US stock account has a total of 100 dollars and want to buy Amazon stock, and Amazon's current share price is $2,300, through fractional share trading, can buy 0.043 shares of Amazon stock. Although it is less than 1 share, it will still be counted in stock holdings. This is a very friendly feature for investors with small amounts of capital.
