Fractional Trading: What Is It and How Does It Work? | Q&A with Apricot

You no longer need to buy an entire share to start investing.

With the latest update to the Apricot Capital app, you can now buy and sell fractional shares, making investing more accessible and flexible.

What is fractional trading?

Fractional trading allows you to buy or sell a portion of a share instead of purchasing a whole share.

This means you can start investing with an amount that suits your budget while gaining exposure to some of the world’s leading companies.

How does it work?

When you purchase 0.1 of a share, you become the owner of 10% of one share. As the market price of the stock changes, the value of your fractional share changes proportionally.

For example:

Suppose one Apple share is worth $300.

• If you buy 0.1 of a share, your investment will be $30.
• If Apple’s share price later increases to $330 (a 10% increase), the value of your 0.1 share also increases by 10%, from $30 to $33.
• Likewise, if the share price decreases, the value of your fractional share decreases proportionally.

In other words, you participate in the same percentage price movements as someone who owns a whole share—while investing a smaller amount.

Why choose fractional trading?

Fractional trading allows you to:

• Start investing with smaller amounts.
• Build a diversified portfolio by investing across multiple companies.
• Invest in leading U.S. companies without purchasing whole shares.
• Grow your portfolio gradually through regular investing.

Which companies are available?

Fractional trading is currently available for 50 U.S. companies, including:

• Apple
• Microsoft
• NVIDIA
• Meta
• Tesla
• and many more.

The list of supported securities will continue to expand over time.

Important information

When trading fractional shares in the Apricot Capital investment app, it is important to keep the following key points in mind:

• Fractional trading is available only during regular U.S. market hours.
• It is not supported during pre-market or after-hours trading sessions.
• Short selling is not available for fractional shares.
• Only Market and Limit orders are supported.
• Fractional trading is not available with GTD (Good Till Date) or GTC (Good Till Cancelled) orders.

How to get started

Getting started is simple:

• Open a brokerage account with Apricot Capital.
• Download or update the Apricot Capital app.
• Fund your brokerage account.
• Select an eligible company and purchase the desired fraction of a share.

Whether you’re taking your first steps as an investor or continuing to build your portfolio, fractional trading gives you greater flexibility to invest according to your financial goals.