Purchase of fractions of Square
Even if Square’s share price is slightly out of your price range at around $ 236, you know that with most brokers, you can now invest in dollar amounts in addition to buying stocks. This is known as fractional participation. So if you kept going Robinhood Markets or Charles Schwab, for example, you can invest any dollar amount in a stock like Square.
For example with Fractions of shares, you could invest $ 150 in Square and you’d buy about 63% of a stock at its current price. Then you could keep investing in that stock, say $ 50 every month, for as long as you wanted, and it’ll tell you what fraction of the stock, and ultimately how many stocks, you own each time you invest.
One of the great things about investing in fractional stocks is that the returns you get will match the returns on the entire stock. So if the stock price goes up 20% this year, the value of your fractions of stocks will also go up 20%.
You could take that $ 150 and buy 50 shares of a stock that costs $ 3 a share, but the odds of finding a stock at that price with Square’s growth potential are pretty slim. Buying fractions of a great stock like Square should certainly be an option to consider.
