Comments by "Magic Beans" (@Magic_beans_) on "Fractional Shares Explained - Everything You Need To Know About Sharing Shares" video.

  1. Zero-commission brokerage has made that much more feasible. I now have my regular biweekly investment automated & spread across 20+ stocks,, so I’m basically my own ETF.
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  2. True, but how much it matters depends on the broker’s policies, namely where they do that rounding. I use Fidelity, and they round to either 0.001 share or the $0.01. So the effect of rounding on, say, 0.001 share of Chipotle (priced at $2,903.44 as of this writing) is pretty small.
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  3. It should, yes. Imagine you buy Microsoft (share price around $400) at $50 a paycheck. After your eighth or ninth purchase those fractions will add up and pass the full-share mark. At least at my brokerage, from that point on the cobbled-together share is treated like any other full share. It gains voting rights and can be transferred.
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