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Shares by the Slice – Get Yours!
by Howard Haykin
Popularized during the pandemic by such relative newcomers as Robinhood, SoFi, and Stash, and by such branded names as Interactive Brokers, Schwab, and Fidelity, “stock slices” are fractional or pieces of a full share of a company stock or an exchange traded funds (ETF).
While "buy and hold" investment advisers would typically steer invsestors into a low-cost index fund, like the S&P 500 Index Fund - in which you'd be invested in a basket of, say, 500 or 1,000 stocks - many younger individuals would prefer to trade a select few ‘hot-ticket’ companies - like Amazon or NetFlix - rather than be passively invested in a basket of 'nameless' companies. That said, new investors should be mindful that trading can be treacherous and that "buying shares is easy, but knowing when to sell is difficult." In any case, the choice is yours.
For further details on Shares by the Slice or Fractional Investing, try reading these posts …
- Washington Post: Shares by the slice: Fractional investing sparks a stock market stampede.
- Clark: 4 Things to Know Before You Buy Fractional Shares.
- Investopedia: Comparing Fractional Trading Offerings.