Stock-trading company, Robinhood, recently announced that its customers will soon have the ability to buy fractional shares of a range of equities.
Robinhood managed to make a name for itself in the six years of its existence in several ways. First, it allowed traders to trade stock without having to pay a fee. Now, it has also announced that it will allow customers to buy and sell small fractions of shares, as well.
In its blog post, Robinhood announced that it is introducing the so-called Fractional Shares, which come as a new way of investing. The company points out that there are many stocks and ETFs that cost huge amounts of money, often thousands of dollars per share. While this is fine for major investors and institutions, this type of investing and trading is usually well out of reach for most retail investors.