This isn’t really a new thing, DRIPs have had this forever, but nice to see it available especially when looking at purchases like AMZN where maybe you can only afford purchase 2.75 shares or something.
Fractional Shares
31–40 of 99 posts
Re: Fractional Shares
#32I'm really curious if this is a legitimate growth driver for brokerages and what % of trading volume is represented by a buyer looking to buy It feels very incremental to me. It also feels like a feature that is representative of something that would only happen at the "top" of the market.
I agree. Very incremental and I’d be surprise if it’s a meaningful growth driver. However, it probably has most appeal to new investors who are just starting out which seems on-message for Robinhood. My teenager who got interested in learning about investing this past year has a portfolio comprised almost entirely of single share positions. Fractional shares would interest him.
Re: Fractional Shares
#33Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.
Considering they have completely annihilated their reputation with anyone remotely paying attention, the only market left for them might be 18 year olds who can only invest $10 at a time
Re: Fractional Shares
#34I'm really curious if this is a legitimate growth driver for brokerages and what % of trading volume is represented by a buyer looking to buy It feels very incremental to me. It also feels like a feature that is representative of something that would only happen at the "top" of the market.
Actually I think this is huge, not for existing investors but precisely for people who aren't.
For a teenager who wants to invest $100 to "dip their toes in" when a share of Amazon is over $1,700?!?! And Google over $1,300?
Back in the days when stock regularly split it wasn't a big issue. But now that a bunch of companies think it's somehow unfashionable to split their stock (e.g. Amazon and Google), all this does is exclude smaller investors. Fractional shares solves this problem.
A single share of stock shouldn't cost more than a MacBook, sheesh.
Re: Fractional Shares
#35Do you really own anything, or are you just lending money to Robinhood? Does your fractional buy get reported to the transfer agent for the stock? Do you get the annual report? Voting rights?
Or perhaps more importantly, if Robinhood fails do you actually get to keep the shares like with a traditional broker or do "your" fractional shares disappear with the company?
It's possible SIPC insurance steps in and provides cash value, with your fractional ownership relinquished.
Re: Fractional Shares
#36Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.
Considering they have completely annihilated their reputation with anyone remotely paying attention, the only market left for them might be 18 year olds who can only invest $10 at a time
That's a pretty toxic comment. Surely multiple banks and other software businesses have made mistakes but that doesn't stop the users from trusting their services.
All this will blow over and people will forgive and forget. You don't need to age discriminant just because they make it easier to invest
Re: Fractional Shares
#37I'm really curious if this is a legitimate growth driver for brokerages and what % of trading volume is represented by a buyer looking to buy It feels very incremental to me. It also feels like a feature that is representative of something that would only happen at the "top" of the market.
Actually I think this is huge, not for existing investors but precisely for people who aren't . For a teenager who wants to invest $100 to "dip their toes in" when a share of Amazon is over $1,700?!?! And Google over $1,300? Back in the days when stock regularly split it wasn't a big issue. But now that a bunch of companies think it's somehow unfashionable to split their stock (e.g. Amazon and Google), all this does…
Do we want to encourage teenagers to buy stock in individual companies? Index funds I could see.
Re: Fractional Shares
#38Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.
Considering they have completely annihilated their reputation with anyone remotely paying attention, the only market left for them might be 18 year olds who can only invest $10 at a time
> "Considering they have completely annihilated their reputation with anyone remotely paying attention"
Can you elaborate on this a bit and/or share article(s)?
Re: Fractional Shares
#39Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.
I've been with Robinhood for over 3 years and I have had zero issues with my portfolio or any features around managing my account day-to-day. The only thing that tripped me up was the transition from Apex to their own clearing house, so I had some extra paperwork to file w/ the IRS during that transition year.
I see a lot of people saying things like "I don't trust Robinhood with my money". I am curious what scenario you see unfolding with Robinhood that could result in loss of your assets. Especially scenarios impacting Robinhood uniquely. Are you aware that Robinhood, as well as virtually every other brokerage in America, provides SIPC insurance up to 500K USD on all (non-crypto) investment accounts? This is on-par with the same kind of protections you get with any FDIC-insured checking or savings account. In order to even qualify for this kind of insurance, Robinhood had to essentially sell its soul to the various auditors and regulators. Regulations around these kinds of businesses are incredibly stringent. You would probably feel a lot more comfortable with any arbitrary brokerage if you had to sit through one of their audits, or were simply made aware of how extensive it is.
There is certainly a lot of "controversy" around Robinhood in the press lately (surely no competitor would stand to gain from running hit pieces against a zero commission broker), but from a purely academic standpoint, it is just noise and doesn't impact the ability of the firm to carry out its fiduciary duties in a reliable and consistent manner.
Re: Fractional Shares
#40Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.
I need some deep out of the money calls on fractional shares at 1000:1 leverage expiring tomorrow to satisfy my personal risk tolerance.