One of the unique and flexible investing mechanisms in the US stock market is that investors can own parts of stocks along with full shares. Anything less than 1 quantity is considered a fractional purchase. This allows investors to trade any fraction or dollar value in a listed company. You can purchase shares worth $50 or buy 0.05 shares of a company as per your convenience.
For example, if you want to invest $150 in Amazon, but 1 Amazon share is trading at $3,000, fractional investing allows you to buy less than 1 share i.e. (150/3,000) = 0.05 shares of Amazon. This helps you invest small amounts across a diversified portfolio of stocks.
You can also sell fractional shares of US stocks on Groww.