For Young Investors: Robinhood Rolls Out Fractional Shares, DRIP, Recurring Investment Features
Dec 14, 2019 01:09AM
By Paul Spear
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.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. This is not a recommendation of any investment by Dig
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