Investing in the U.S. Market: A Simple Guide to Fractional Shares
- Rajasekar Maruthasalam
- 11 hours ago
- 2 min read
In the Indian market, you must buy 1 full share. If the share price is high, you need more money.
In the U.S. market, it works differently. You do not need to buy a full share. You can buy a small part of a share. This is called a fractional share.
What Is a Fractional Share -
Think of a share like a pizza.
In India, you buy the full pizza.
In the U.S., you can buy one slice.
Investing in the U.S. Market: This means you can invest a small amount and still own part of a big company.
Example
If a U.S. stock costs around $500 and you invest $50, you can buy 0.10 share.
You are still a shareholder.
How to Invest in the U.S. Market -
Step 1: Decide the Amount
Choose how much money you want to invest.
Example: ₹20,000 or ₹50,000.
Step 2: Choose the Company
Pick a company like NVIDIA.
Step 3: Platform Does the Calculation
Your investing app calculates how much of the share you get.
You only decide the amount.
Do Fractional Shares Give Full Benefits -
Yes.
Dividends
You get dividends based on how much you own.
Price Growth
If the stock rises by 10%, your investment also rises by 10%.
This is true even for small fractions.
Why Fractional Shares Are Helpful -
The main benefit is diversification.
Instead of buying one costly stock, you can invest small amounts in many companies.
Example
With ₹1,00,000, you can invest ₹20,000 each in five companies.
This helps reduce risk.
India Market vs U.S. Market -
Indian Market
Minimum buy: 1 full share
Investment based on number of shares
Needs more money for high-priced stocks
U.S. Market
Minimum buy: Small fraction
Investment based on amount
Easy to start with low capital
Final Thought -
Do not fear high U.S. stock prices. You do not need big money to start.
Fractional shares make global investing simple. Focus on good companies and long-term goals.
Learn These Concepts the Right Way
Global events like U.S. rate cuts, trade deals, or tech shifts can move markets fast.
Most people hear the news.
Very few understand what it really means for their money.
I explain these things in a simple way.
No jargon.
Clear logic.
Real-life examples.
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