A lot of people are taking interest in investing in company shares in South Africa. Platforms like EasyEquities have made it easier for the average Themba to buy company shares, removing all the expensive and prohibitive costs. This is a guide on how to buy fractional shares in South Africa.
What are fractional shares?
Fractional shares are partial shares of a company’s stock: Instead of owning one or more full shares of the stock, you own a portion, or fraction, of one. One company share can be very expensive, take Capitec for example, at the time of writing this article, one Capitec Bank share costs R1895.
You might not have that much money to spend, you might only have R300, in which case you could buy a fraction of the full share. This means you will only own a piece of the share, not the whole share.
The main benefit of owning fractional shares is that you can profit off the growth of the company even when you have little to invest. If the share price grows up 30%, so will your fractional shares.
How to buy fractional shares
Buying fractional shares in South Africa is easy, all you have to do is to open a EasyEquities account then start buying shares. EasyEquities makes buying fractional shares so much easier, all you have to do is to enter the amount of money you want to buy with and it will automatically convert to the relevant number of shares.
Will you get dividends on fractional shares? Yes, fractional shares do pay dividends, the main disadvantage is that this money might not be that significant.
This was an overview of how fractional shares work. Do you have any thoughts or questions? Comment below.