Where do fractional shares comefrom?

Discussion in 'Stocks' started by noob_trad3r, Jan 19, 2009.

  1. Since shares are not traded in fractions where do they come from when dividends reinvest you get something like 40.3583 shares etc..

    stocks like JNJ etc..
     
  2. From mergers/acquisitions sometimes too.
    So ex: you might own 100 ConMed and its get bought by JNJ for .43 shares of JNJ.
     
  3. I had this question, too. I got KFT shares as a dividend payment from MO a few years ago. I sold them, but I'm left with like .148 shares of KFT in my account that I cannot get rid of, and the people at Scottrade don't know how to get rid of them, either. You obviously can't sell a fractional share.
     
  4. heh, you should be able to. Etrade has a special sell fractional shares option.

    but the problem is do you want to waste commission to sell .148 shares :)

    I am surprised none of the pros here have been able to answer this question. I never see fractions of shares trading on etrade pro.