3 ms·
A poor investor who wants to invest in Amazon but only has $1000 is still able to. A poor investor who wants to diversify can assemble a portfolio that matches
by Stupulous 6y ago
A poor investor who wants to invest in Amazon but only has $1000 is still able to. A poor investor who wants to diversify can assemble a portfolio that matches a wealthy investor's, rather than investing everything in a couple companies. Fractional shares level the playing field for smaller players.
If the issue is that a big benefit of shares is holding 100 of them and selling contracts, why not solve that with fractional contracts? Liquidity, probably. But whole shares have the same issue as fractional shares there, as you're still only getting 1/100th of a contractable quantity.
- Ensorceled 6y agoI think the real solution is force companies to split when they can no longer be effectively traded by small investors. Companies used to do that on a regular basis...