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Q: Hi Alex. So what do “fractional shares” mean?

Q: So what do “fractional shares” mean? I’m so leary about investing. This way sounds more trustworthy, but I’d like to understand better. –Julie

A: Thanks for asking, Julie! We understand how intimidating or overwhelming entering the stock market can feel, especially when one share of a company’s stock can cost hundreds– if not thousands– of dollars. Buying fractional shares, rather than full shares of stock, can make stock market investing a lot more accessible and affordable.

A fractional share of stock is literally just a fraction of a full share of stock. Instead of having to pay the full $1000 for one share of XYZ stock, you could pay $5 to start with and you’d still own a piece of it—a smaller piece, but still stock ownership. That smaller piece of stock can also increase in value at the same rate as a full share.

You can read more about what fractional shares are on our blog, but in summary, they essentially allow you to own what you love for less.

While not every Broker-Dealer offers to buy, hold, or sell fractional shares, Bumped charges no fees to do so, and automatically rewards you in fractional shares of stock of your choice for your everyday spending.

Plus with Bumped, you can earn them by fulfilling your regular shopping needs. For example, if you were to buy your groceries through the Bumped app or shop at any of your selected Bumped “Loyalty” brands, a percentage of the purchases you made would be given back to you in the form of fractional shares of stock.

The amount of fractional shares rewarded to you from Bumped depends on the percentage of stock rewards a merchant is offering, the amount of eligible purchases you make with them, and the current market value of the stock. Don’t worry– we figure all that out for you, so you’ll see your rewards automatically added to your account without another thought.

You can choose and personalize the types of stock you’d like to be rewarded with by heading to “My Stock Picks” in your Bumped account on mobile or web. Your “Loyalty” brands can offer a more streamlined experience: Shop with ABC brand, get ABC’s company stock.

It’s all our way of helping to make investing more simple, approachable, and dare we say– enjoyable. Hope this helps!


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© 2021 Bumped Inc. All rights reserved. Use the following links to access Bumped Financial LLC's Privacy Policy, Terms of Use, Customer Agreement, and other Legal Disclosures.

The Bumped app and website are operated by Bumped, Inc. Brokerage services are provided by Bumped Financial LLC, member FINRA ↗/SIPC ↗. More about Bumped Financial LLC on FINRA’s FINRA BrokerCheck website ↗

Investing in securities involves risk, including possible loss of principal: Not FDIC Insured • No Bank Guarantee • May Lose Value. Past performance is not a guarantee of future results. Nothing on this site should be construed as an offer to purchase or sell securities.

Any market, economic and / or performance data shown is for hypothetical and illustrative purposes only. Data does not represent actual results.  Participation is only for investors who understand and agree to the risks inherent in their Bumped Accounts. Only qualifying purchases made according to the terms and conditions are eligible for stock rewards. Bumped does not charge brokerage fees. Bumped reserves the right to restrict or revoke any and all offers at any time.

Brands and brand logos shown are for illustrative purposes only and do not indicate specific offers from, or guarantees to participate with, any of the merchants shown. Offers and participating brands are subject to change without notice.

Investors receive shares of ETFs as rewards. Investors should consider their investment objectives, risks, carefully before investing. This and other information are found in the fund prospectus. Please read the prospectus carefully before you choose to invest.

Rewards are accrued for investment after qualifying purchases, but may be reversed if the qualifying transaction is later reversed. Bumped does not assume the risk of market movements for returned items or disqualified transactions. 

Bumped Inc., its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

A few notes on fractional shares: they’re typically not transferable between brokerage firms. If you want to transfer your Bumped account, you may have to sell your fractional shares first. Fractional shares can’t be put into certificate form or physically mailed, nor do they have voting rights.