Investor Glossary-fractional shareInvestor Glossary-fractional shareInvestor Glossary-fractional shareInvestor Glossary-fractional shareInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fractional Share

The HTML to link to this page
 

A fractional share is a fraction of a share or less than one whole share. A fractional share can occur if a company splits its stock, merges with another company in a stock swap or stock buyout or pays a stock dividend. Although most companies allow fractional share holdings to exist in their dividend reinvestment plan, an investor cannot buy and sell a fractional share. Instead, the company will require an investor who is liquidating a fractional share position to accept the cash value of the fractional share. Another alternative is for the company to round the fractional share amount up or down to the nearest whole number of shares. The IRS requires investors to include fractional share amounts in their cost basis when reporting stock sales on Schedule D of their tax return.



Rate this fractional share definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, irrevocable trust, ex-dividend, inflation, open position, Zero Cost Collar, stock split, quality assurance, Key Rate Duration, deferred revenue, APR, reverse mortgage, minority interest, phantom income, debt service coverage, option premium, real GDP, LIBOR, balance sheet, 1035 exchange, diluted share, ex-dividend date, 144a, command economy, class C shares, cancelled check, in escrow, VIX, covered put, per diem, labor relations, required rate of return, FTSE, wholly-owned subsidiary, FICO score, limit order, implied volatility, dividends payable, liquidity ratio, retained earnings, EBITDA, deferred tax, stock market close, margin rate, current ratio, 401a, risk management, 1031 exchange


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use