This is actually a pretty good idea. Right now an average investor saving a few hundred a month cant afford to get into anything but a select set of mutual funds and some low cost ETFs. In this way a normal person could buy into companies they like with a fraction of the amount and build a position incrementally. Brilliant move. You could create micro portfolios of various indexes for example and replicate their behavior better. There may be significant edge in this approach.
This should have been implemented years ago. There are a couple of companies already offering this, but so far none of the big brokerage names have done so.
Hmm, sounds like the last push higher in equity markets. The operators are trying to squeeze the last penny out of averages Joes. And up we go for another leg.
Micro index futures caused all this. Until they undo the pattern day trading rule, these brokers will keep suffering.
the 'last' is in your head... how much can fraction share sales push it up.. stocks are still cheap as dirt... you are seeing 'crashes' because you are empty handed.
as posters said above, it's not a big deal, just a convenience.... many times when you buy in there are fractions that you have to leave in cash, now that many shares are high priced without splits.
I see a completely overhyped market where fair valuations lie 60-70% below current levels , not short term like a crash but long term valuations. But as long as stupid people buy anything that is pushed to to them by the marketing masters of the universe those corrections will have to wait. Sky high credit card and auto loan debt, mortgage debt, student debt, debt debt debt, people live completely on borrowed time. Stocks cheap? Which marketing guru raped you last night?
'I see' being the keyword - you haven't made a cent in the 10 year bull market and thus the wishful thinking that you can enter after a 70% crash.... 60-70 some number pulled out of your ass.. the chart has been going north east for 10 years, because 1 after another empty handed people are forced to buy in. you can buy in now and still make 40% till stock reaches fair value. and I didn't pull '40%' out of thin air. of course the above is my version of 'I see'... then the question is who is right... I have a few million in profit to argue that mine is closer to the truth.
I tell you a secret. I never owned a stock my entire life. For 45 years now. Not one, not a mutual fund share, no certificates. Nothing. I don't even trade stocks. Hardly none. I made all my savings working at a hedge fund and several investment banks and in the past 9 years trading macro (mostly cash fx and fx options). I would not buy a stock even if Apple was down 90%. I happily put my millions against your millions.