Schwab Fractional Shares
Thought this would be interesting to share, as it is quite innovative. Schwab is offering the ability to purchase fractions of stocks. It empowers an investor to possess any of America's leading companies from the S&P 500 for as little as $5 each, regardless of actual share cost. For example, instead of purchasing Apple at full price, a slice of Apple can be purchase for as little as $5. This new service, coming June 9, will be commission-free and will be available in retail Schwab brokerage, custodial, and individual retirement accounts (IRAs). Trades can be handled in real-time throughout the trading day using market orders. Again, investors can not only purchase just a single stock slice, but up to 10 different slice at once.
At only the cost of a Starbucks coffee, this will defenantly allow the younger genreations, Millenial and Generation Z alike, the ability to purchase pieces of their favorite companies without having to drop a complete paycheck for just a share of Apple or a month’s of pay for a share of Google.
Please keep in mind that this is not intended to be investment advice or a recommendation of any stock. Investing in stocks can be volatile and involves risk including loss of principal. Consider your individual circumstances prior to investing.