unit of stock that is less than one full share. For example, under a dividend reinvestment program, the dividend amount is insufficient to purchase one full share at the present market price of stock. In this case, the stockholder is credited with the fractional share; when there has been an accumulation of sufficient dividends for one share, it will be issued.
unit of stock less than one full share. For example, if a shareholder owns 50 shares and the company declares a 5% stock dividend, the owner gets 2.5 shares as a dividend. The stockholder may round the fraction up by purchasing the necessary part of a share or receive cash for the fractional share.
unit of stock less than one full share. For instance, if a shareholder is in a dividend reinvestment program, and the dividends being reinvested are not adequate to buy a full share at the stock's current price, the shareholder will be credited with a fractional share until enough dividends accumulate to purchase a full share.
