Schwab to offer fractional stock ownership option

[disneysteve]

In an interview with Charles Schwab in this month's Kiplinger's, he said that in the spring, they will be introducing fractional stock ownership. I thought that was pretty interesting. I think there is an online service that does that but this is the first I've heard of any of the major players doing it. I'm curious to see how that works.

[Thrif-t]

I like that! My kids have roths with schwab and have some money in their cash account, will this apply to partial shares of etf funds?

[disneysteve]

I like that! My kids have roths with schwab and have some money in their cash account, will this apply to partial shares of etf funds?

I don’t know. It was a brief interview. He didn’t give details.

[rennigade]

Recently, Robinhood announced they would be doing this. Crazy as it sounds, robinhood is small compared to the other giants, yet the changes they are making are forcing others to follow in their footsteps. Robin hood does have a huge following though.

[bjl584]

Interesting.
Fractional ownership didn't make much sense in the commission days.
This could get more people buying equities if schwab has waived fees like some of the other brokers.

[disneysteve]

Fractional ownership didn't make much sense in the commission days.

I thought the same thing. Buying 1/10 of a share of most stocks made no sense if the commission was $4.95. Now that trading has no transaction cost, they can offer this service. I'm sure other brokers will follow suit.

[scfr]

I'll take 1/100 of a share of Berkshire Hathaway Class A shares, please … if I can attend the annual meeting and get the discount on See's candy.
*kidding*

[Thrif-t]

I'll take 1/100 of a share of Berkshire Hathaway Class A shares, please … if I can attend the annual meeting and get the discount on See's candy.
*kidding*

A little off topic but we LOVE See's Candy. My dad started buying it when it was $5/box for the nuts and chews in the 80's. He was in a club and they'd get a big order together every year and my dad would buy a case of it! I remember the price going from 5 to 10/box cause when I first started working I'd buy a box for my boss. I just ordered a box for my DH for Christmas, it was $21 a box. But it's worth it for Christmas, he's going to be so excited, we've not had it in forever!!

[james.hendrickson]

A little off topic but we LOVE See's Candy. My dad started buying it when it was $5/box for the nuts and chews in the 80's. He was in a club and they'd get a big order together every year and my dad would buy a case of it! I remember the price going from 5 to 10/box cause when I first started working I'd buy a box for my boss. I just ordered a box for my DH for Christmas, it was $21 a box. But it's worth it for Christmas, he's going to be so excited, we've not had it in forever!!

Oh man - I polished off a box of Sees last work. That stuff is great.