How To Buy Square For The Cost Of A Penny Stock Personal finance

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Buy fractions of Square shares

Even though the Square share price, at around $ 236, is a little outside your price range, be aware that most brokerages now allow you to invest by dollar amount, in addition to buying. actions. This is called fractional investing. So if you continued Robinhood Markets Where Charles Schwab, for example, you can invest whatever amount you want in a stock like Square.

For example, with fractional shares, you could invest $ 150 in Square and that would buy you about 63% of a share at its current price. Then you can keep investing in that stock, say $ 50 per month, for as long as you want, and that will tell you what fraction of the stock, and possibly how many stocks, you own each time you invest. .

One of the great advantages of investing in fractional stocks is that the returns you get are the returns for the entire stock. So if the stock price goes up 20% this year, the value of your fractional shares also increases by 20%.

You can take that $ 150 and buy 50 shares of a stock that costs $ 3 per share, but the chances of finding a stock at that price with Square’s growth potential are pretty low. Buying fractional shares of a large stock like Square should definitely be an option to consider.


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