Fractional Share

Fractional Share
A share of equity that is less than one full share. Fractional shares usually come about from stock splits, dividend reinvestment plans (DRIPs) and similar corporate actions. Normally, fractional shares cannot be acquired from the market.

Fractional shares can be created in a situation where a company has a 3-for-2 stock split. Suppose you have three shares of XYZ Corp. and XYZ has a 3-for-2 stock split. In this case, you should get an extra 1.5 shares, which would be 4.5 shares total. Normally, you can't buy half a share in the stock market, but in this case, you could end up with a fractional share.

Most companies tend to round up to the nearest whole number of shares when fractional shares occur. In the above example, XYZ Corp. could opt to round up the 0.5 share to leave you with a full five shares.


Investment dictionary. . 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • fractional share — stocks amounting to less than one full share>, usually resulting from splits , acquisitions, exchanges, or dividend reinvestment programs . Bloomberg Financial Dictionary * * * fractional share fractional share ➔ Share * * * fractional share… …   Financial and business terms

  • fractional share — A fractional part of a share of corporate stock, such being nonvoting, except as voting has been authorized by statute. Commonwealth ex rel. Cartwright v Cartwright, 350 Pa 638, 40 A2d 30, 155 ALR 1088 …   Ballentine's law dictionary

  • fractional share — Unit of stock less than a full share. This term comes into use with a stock dividend in an instance for example where an owner of 75 shares receives a 10% stock dividend. That part or portion of a share of stock indicated on a right or warrant as …   Black's law dictionary

  • fractional share — Unit of stock less than a full share. This term comes into use with a stock dividend in an instance for example where an owner of 75 shares receives a 10% stock dividend. That part or portion of a share of stock indicated on a right or warrant as …   Black's law dictionary

  • fractional share formula — See marital deduction …   Black's law dictionary

  • fractional share formula — See marital deduction …   Black's law dictionary

  • Fractional Jets — is a common term for fractional aircraft ownership. The first such program was launched in 1986 by NetJets, which continues to dominate the industry. Other providers include business jet operators CitationShares, Flexjet,… …   Wikipedia

  • Fractional ownership — In business, fractional ownership is a percentage share of an expensive asset. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing.… …   Wikipedia

  • share — Shares represent a slice in the ownership of a company. Financial Services Glossary The authorised share capital of a company is divided into a number of equal parts. Each part is called a share. See ordinary shares, preference shares, securities …   Financial and business terms

  • fractional ownership — ➔ ownership * * * fractional ownership UK US noun [U] FINANCE ► a situation in which two or more people, companies, or organizations own and share an asset, for example, property: fractional ownership of sth »You can share valuable assets with… …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”