Fractional shares allow investors to own less than one full share of a security. Instead of purchasing an entire share, you may be able to invest a specific dollar amount and receive a corresponding fractional ownership interest.

Silo may support fractional shares for eligible securities, giving customers more flexibility when investing. However, availability and the treatment of fractional shares can vary depending on the security, account type, and applicable brokerage rules.

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1. Can I Buy Fractional Shares Through Silo?

For eligible securities, Silo may allow you to purchase a portion of a share rather than a whole share.

For example, if a security trades at $500 per share, you may be able to invest $50 and receive a fractional position representing a portion of one share.

Fractional-share availability is not guaranteed for every security.

2. Can I Sell Fractional Shares?

If a security is eligible for fractional-share trading, you may generally be able to sell your fractional position.

The value of the position will depend on the current market price and the amount of the security you own. Applicable trading rules and restrictions may still apply.

3. Can I Transfer Fractional Shares to Another Brokerage?

Fractional shares cannot always be transferred between brokerages in the same way as whole shares.

If you transfer your account to another brokerage, certain fractional positions may not be eligible for transfer. The fractional portion may therefore require separate treatment as part of the transfer process.

Before initiating a transfer, review the receiving brokerage's policies regarding fractional shares.

4. What Happens to Fractional Shares During a Stock Split?

A stock split can change the number of shares you own while maintaining the overall value of your investment, subject to market movements.

For example, if a company completes a 2-for-1 stock split, a fractional position may be adjusted proportionally to reflect the split.

The exact treatment depends on the terms of the corporate action.

5. What Happens to Fractional Shares During a Merger or Other Corporate Action?

Mergers, acquisitions, spin-offs, ticker changes, and other corporate actions can affect fractional positions.

Depending on the terms of the corporate action, fractional interests may be converted, adjusted, or handled according to the applicable corporate-action procedures.

If a corporate action affects one of your positions, review the information provided in your Silo account and contact Silo Support if you have questions about the resulting position.

6. Do Fractional Shares Receive Dividends?

If a security pays a dividend and you own an eligible fractional position, your dividend may generally be based on the amount of the security you own.

For example, owning half of a share would generally result in a dividend based on that half-share interest, subject to the security's dividend terms and applicable processing rules.

7. Are All Securities Available as Fractional Shares?

No. Fractional-share availability may vary by security.

Some securities may only be available for trading in whole shares, while others may be eligible for fractional-share transactions. Availability can also depend on applicable brokerage and market rules.

Conclusion

You can invest by dollar amount and own a slice of a share: a $50 order on a $500 stock buys 0.1 shares. Fractions earn dividends proportionally and adjust through splits, but they can't transfer between brokerages. Buying and selling: For eligible securities, enter a dollar amount and receive the corresponding fraction; selling works the same way. Not every security supports fractional trading; whole-share-only listings will say so at order time.

Dividends and corporate actions: Dividends pay pro rata: half a share earns half the dividend. Splits adjust fractions proportionally, so 0.5 shares becomes 1 share in a 2-for-1 split. Mergers and spin-offs follow the terms of the deal, and tiny resulting fractions are handled per the corporate-action procedures, sometimes as cash in lieu. Transfers: ACATS can't move fractional shares. If you transfer your account out, the fractional portion is typically liquidated for cash by the delivering side, so plan for that small sale in a taxable account.