Fractional Shares

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

>And is this something that exists outside of Robinhood?

I'd imagine similar to all of the other brokerage accounts that allow for fractional shares either via direct purchase or dividend reinvestment purchases. RH's competitor SoFi has had fractional shares for a while now, I would imagine it is set up similar.

Re: Fractional Shares

#5

Post by manacit » Thu, Dec 12, 2019, 6:39 PM UTC

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

It exists outside of Robinhood:

- Sofi: https://www.sofi.com/invest/fractional-shares/

- Schwab: https://www.wsj.com/articles/schwab-in-bid-for-younger-clien...

I'm not totally sure how it's structured, but I imagine RH "owns" the shares and offers you the corresponding fractional amount of value/dividends, etc.

Re: Fractional Shares

#6

Post by sdinsn » Thu, Dec 12, 2019, 6:41 PM UTC

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

> And is this something that exists outside of Robinhood?

Yes, it exists in every other broker. RH is just slow

Re: Fractional Shares

#7

Post by atombender » Thu, Dec 12, 2019, 6:41 PM UTC

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

There's a bunch of brokerages offering fractional shares, such as Betterment, Motif, M1, Stash, Stockpile, and others. Schwab has also announced they'll be adding it.

There's also DRIP (Divident ReInvestment Plan) plans, a feature brokerages offer to allow fractional reinvestment of dividends.

Not sure how it's actually implemented as a financial product.

Re: Fractional Shares

#8

Post by [deleted] » Thu, Dec 12, 2019, 6:42 PM UTC

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

[deleted]

Re: Fractional Shares

#9

Post by atombender » Thu, Dec 12, 2019, 6:42 PM UTC

manacit wrote: post #5

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

It exists outside of Robinhood: - Sofi: https://www.sofi.com/invest/fractional-shares/ - Schwab: https://www.wsj.com/articles/schwab-in-bid-for-younger-clien... I'm not totally sure how it's structured, but I imagine RH "owns" the shares and offers you the corresponding fractional amount of value/dividends, etc.

Note that Schwab has announced it, but it's not available yet.

Re: Fractional Shares

#10

Post by zymhan » Thu, Dec 12, 2019, 6:43 PM UTC

sdinsn wrote: post #6

zymhan wrote: post #2

So, what is the actual "vehicle" with which the shares will be purchased? And is this something that exists outside of Robinhood?

> And is this something that exists outside of Robinhood? Yes, it exists in every other broker. RH is just slow

AFAIK Vanguard doesn't offer anything like this, unless you're buying into a mutual fund.