The Robinhood trading platform announced the ability to buy partial stock shares. Some stocks and ETFs cost hundreds or thousands of dollars for a single share. This means that many people may not be able to invest in their favorite companies or funds. With Fractional Shares, you can invest in stocks including Amazon, Apple, Disney, Berkshire Hathaway, and thousands of others with as little as $1.
Lots of newer/younger investors are always interested in the fractional share option. Schwab recently announced they’ll soon be offering that as well. Robinhood is likely strategizing to stay relevant as their primary draw – no fee trading – became the standard over the past few months.