What is the meaning of Fractional share?

If you reinvest your dividends or invest a fixed dollar amount-for example, $100 a quarter-in a stock dividend reinvestment plan (DRIP) or mutual fund, the amount may not be enough to buy a full share, or there may be money left over after buying one or more full shares. The excess amount buys a' Fractional share', a unit that is less than one whole share. In a DRIP, a fractional share gives you credit toward the purchase of a full share. With a mutual fund, in contrast, the fractional share is included in your account value.

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APABarry Goldsmith. (2010). fractional share. Retrieved September 22, 2026, from http://smartdefine.org/fractional_share/definitions/1154512
ChicagoBarry Goldsmith. 2010. "fractional share" http://smartdefine.org/fractional_share/definitions/1154512 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, fractional share, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/fractional_share/definitions/1154512>.
MLABarry Goldsmith. "fractional share" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/fractional_share/definitions/1154512>