Quote:
Originally Posted by ChiliConCarnage
Buying in fractions is amazing but share price does matter. Let's say Amazon is 6k/share and I have 10k. Fidelity has a great new app and is paying to transfer your account so I want to move my account. I'll end up with 1 Amazon share and 4000 dollars and a tax bill from any profits on my fractional amount. At least I wasnt a guy with 5k of Amazon who had his whole position sold off. I'd rather my amounts held in fractions stay smaller.
I don't have fractional selling so I'd rather have more shares for flexibility. If I've got 2 shares of AMZN for $6400, the only way I can take profit is selling 50% of my position. I'd much rather they 4 to 1 split and give me the option of selling a smaller slice.
Fraction selling/buying is pretty new. Even if half of US brokerages have some version, people from outside the US buy on our markets and tend to not have as great of brokerage options.
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I've never thought about this before, but I wonder if share price makes a bigger difference in retirement portfolios. If I'm retired and I want to take out my appreciation for living expenses, it may be hard to do that if the stock is really expensive and I don't have a lot of shares. I'd have to sell off more than I want in order to liquidate some of it.