Fractional Shares

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On Bumper, you can invest in your favorite companies with just $1. But how? Stocks like Apple or Tesla cost hundreds of dollars. Well, have you heard of fractional shares?


Fractional shares give investors the ability to purchase a fraction of a single share. Instead of buying one share of ABC company for $20, you can choose to invest $10 into ABC company and own half of a share.


With fractional shares, you will earn a proportion of the gains and dividends distributed. Continuing from the example above, if ABC company’s stock increases $10 and distributes $5 in dividends a share over a year, you will only earn $5 in gains and $2.5 in dividends since you own only half a share.


The ability to buy small pieces of a stock can help you diversify at a much lower cost. You no longer have to buy 10 different stocks that cost an arm and a leg. You can diversify with just a few dollars. Also, you have so many more choices of stock to choose from. A stock’s price is no longer a barrier as you begin investing! 


Alright, I think you get it. Fractional shares are like breaking a dollar into nickels and dimes. Now that we get the small picture, let’s move on to the big picture, stock indexes.

Source: Nerd Wallet | Fractional Shares

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Disclosure: This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States). All investments are subject to investment risks, including possible loss of the principal amount invested.
Disclosure: Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security's eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on principal or riskless principal basis, and can only be bought or sold with market orders during market orders.
Equip Solutions, Inc. ("Bumper") and Alpaca Securities LLC ("Alpaca") are not affiliated and neither are responsible for the liabilities of the other.

Technology is offered by Equip Solutions, Inc.

Brokerage services are provided by Alpaca Securities LLC ("Alpaca”), member FINRA, a wholly-owned subsidiary of AlpacaDB, Inc. Clearing services are provided by Velox Clearing LLC (Velox) and Vision Financial Markets LLC (Vision). All three are members of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) per customer. Explanatory brochure available upon request or at www.sipc.org.

This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States).

View Alpaca's disclosures at: https://alpaca.markets/disclosures

Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security’s eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on a principal or riskless principal basis, and can only be bought or sold with market orders during normal market hours.

The content on this website is for illustrative and informational purposes only and any historical returns, expected returns or projections are hypothetical in nature. Investing involves risk & investments may lose value, including the loss of principal. Past performance does not guarantee future returns or results. Before investing, carefully consider your investment objectives, time horizon, and overall risk tolerance as well as the information stated in the product offering prospectuses.