Skip to main content

Dig Imperial Beach

For Young Investors: Robinhood Rolls Out Fractional Shares, DRIP, Recurring Investment Features

Dec 14, 2019 01:09AM ● By Paul Spear
For Young Investors: Robinhood Rolls Out Fractional Shares, DRIP, Recurring Investment Features

Robinhood, a retail trading platform that offers investors commission-free stock, ETF, options trading and high-yield savings accounts, has introduced fractional share trading.

“Some stocks and ETFs cost hundreds or thousands of dollars for a single share. This means that many people may not be able to invest in their favorite companies or funds," Robinhood said in a Thursday statement.

Fractional shares allow investors to buy stocks like Amazon Inc. AMZN 0.03%, Apple Inc. AAPL 1.36%Walt Disney Co. DIS 0.92%, Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) and thousands of others with as little as $1, according to Robinhood. 

This development comes after Robhinood crossed the 10-million account threshold earlier this month.

The firm also announced the support of Dividend Reinvestment Plans (DRIP) and Recurring Investments, allowing traders the ability to automatically reinvest dividends back into the market and schedule recurring investments.

“Pioneering commission-free investing was only the beginning. We believe that fractional share trading will open up investing to even more people, and we’ll continue to find ways to democratize the financial system so everyone can participate," according to the company. 

Photo courtesy of Robinhood. 

Posted-In: RobinhoodFintech News Best of Benzinga

© 2019 Benzinga does not provide investment advice. All rights reserved. This is not a recommendation of any investment by Dig 
Imperial Beach


Note: If you would like to make sure you don't miss stories like this or any other news about the community of Imperial Beach and South County, please be sure to sign up for our newsletter. Please note that every subscriber of our newsletter receives a Community Calendar of Events at the 1st of every month. Click here to: Subscribe


Like what you're reading? Subscribe to Dig Imperial Beach's free newsletter to catch every headline