Fractional share

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Fractional share

Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Fractional Share

Less than one share of a stock or a mutual fund. One almost always purchases fractional shares as part of a dividend reinvestment program. That is, when one automatically uses dividends to buy more shares, there may be extra cash left over but not enough to buy a full share. The company or fund sponsoring the dividend reinvestment program then allows the shareholder to buy a fractional share.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

fractional share

Less than one share of stock, that is, one-third or one-half a share. Fractional shares are generally created from dividend reinvestment plans or stock dividends. For example, if a firm's directors declare a 2% stock dividend, an owner of 70 shares would be entitled to 1.4 additional shares. Because corporations do not issue certificates including fractional shares, the stockholder would receive one share and the cash equivalent for the fractional share. Fractional shares are credited to dividend reinvestment plans.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Fractional share.

If you reinvest your dividends or invest a fixed dollar amount in a stock dividend reinvestment plan (DRIP) or mutual fund, the amount may not be enough to buy a full share.

Alternately, there may be money left over after buying one or more full shares. The excess amount buys a fractional share, a unit that is less than one whole share.

In a DRIP, a fractional share gives you credit toward the purchase of a full share. With a mutual fund, in contrast, the fractional share is included in your account value.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Fractional shares will be paid in cash, except for registered shareholders with book entry accounts at the transfer agent who will have whole and fractional shares added to their account.
Instead, fractional shares that otherwise would have resulted from the reverse stock split were purchased by TA at the closing price of TA's common shares on July 31.
Ken Trautman, president and CEO said, 'the board of directors is delighted to provide this dividend to our shareholders in light of the 47 percent increase in earnings per share for the year 2018 compared to 2017.' No fractional shares will be issued and cash will be paid in lieu of fractional shares.
Shareholders who do not hold a total number of shares that is an exact multiple of 10 must, between 26 February 2019 and 28 March 2019 inclusive, deal with their fractional shares by purchasing or selling directly on the market the number of existing Genkyotex shares needed to obtain a multiple of 10.
Fractional shares were issued in connection with the Split.
No fractional shares of common stock will be granted in connection with the reverse stock split; stockholders who would otherwise be entitled to a fractional share of common stock will be entitled to receive a proportional cash payment.
No fractional shares will be issued in connection with the reverse stock split, and stockholders who would be entitled to fractional shares will receive cash in lieu of fractional shares.
Each holder of a share of Tribune Media will get one-fourth of a share in Tribune Publishing and while no fractional shares will trade, the offering's managers will combine all the fractional shares, sell them on the market and pay cash back to the fractional-share owners.
Additional information on the treatment of fractional shares and other effects of the reverse split can be found in Phoenix's definitive proxy statement filed with the Securities and Exchange Commission on April 3, 2012.
The Old Mutual Foundations in South Africa, Malawi, Namibia, Zimbabwe and the United Kingdom are to receive a financial boost for community programmes focused on education following the group's recently declared special dividend and the receipt of proceeds of sale of fractional shares arising from the recent share consolidation of Old Mutual plc's shares.
Steven Santo, the company chief executive officer, said, 'This past quarter Avantair continued its focus on our core business of selling fractional shares, either through straight purchases or leases, and selling flight hour cards.

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