Fractional Share (Malay)
Semekom Bang: Can you explain the fractional share skit?
Fractional shares are always for stock markets that sell shares in units only.
We in Bursa malaysia use lots. We have odd lots or even lots. The odd lot can be in units of 99 units and below for example; 10 units, 15 units, 22 units etc. This can happen in sharesplit to or bonus issue to or other2 corporate exercise. we buy 10,000 units, we split so 33,333 units. If you want to sell 33 units, you have to enter Odd lot. so, near malaysia common people use Even Lot (normal board lot), 1 lot = 100 units of stock. If you buy shares in 10 units, you lose brokerage money.
Fractional share is more or less so. In the US it is common because in the US he sells in units. And it makes sense that there is fractional because a lot of shares in the US are priced at a premium.
for example, the price of one unit of Bershire Hathaway USD600,000, So fractional share meaning, to buy shares of amazon stock for example 0.10 units. you can buy USD340 at 0.10 units. or buy 0.01 units of berkshire hathway USD4170. and not all brokers for the US market (or any2 market) provide fractional share.
As well as fractional share or odd lot, the main problem is liquidity or liquidity. You have to sell because there are not many buyers or sellers and brokerage fees that are not worth it. In contrast to the odd lot, fractional shareholders may not be voting right as per normal shareholder. It depends on the broker's procedures. Odd lot in malaysia, although there are 5 units of stock, there is voting right.
Dividends, still can but can fractional dividends. if odd lot per unit dividend per share. hopefully get new knowledge, and share.
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