What the heck is "fractional share investing" or Micro Investing, and is it for me?

In this brief article I'm going to let you know how easy it is to get a free share of a stock worth between $2 and $200, but first, what the heck is Fractional Share investing (FSE) or micro investing?

This is not legal or scientific information. Stock market investors should be aware that there's a
financial risk to investing, and this is not the forum to cover those risks. Caveat Emptor (buyer beware)!

FSE is a relatively recent term to identify ownership opportunities in owning a portion of a share of stock. As I write this, Apple and Google shares have recently split and remain for the most part unaffordable to the casual and new investors.

Stocks 101: When the value of a share goes up, the investor gains a dividend based on the new
value of the stock. Conversely when it goes down, value is lost with some stock investment firms suggesting that the stock owner remain invested instead of selling for a loss based on the historical fluctuations of the stock market, or "the market". Things go up and down (and up and down) as a general rule of thumb.

Paying for a stock or partial share and expecting it to always go up is a sure way to lose your shirt (SMH).

So here's where I show you how to get a free share worth from $2-$200. Really. Sign up at Robinhood, one of the first micro investment companies and still the only one (that I know of) giving away a random share of stock to sign up. No investment necessary, there is no obligation to buy anything or to stand on a corner and tell everyone about the free share you just got (unless you want to earn another free share yourself)!

To paraphrase The College Investor, "Robinhood has been the biggest player in commission-free investing for years, revolutionizing the industry with app-based investing several years ago.

However, Robinhood just announced that they will support fractional share investing, and allow Dividend Reinvestment (DRiP). This is huge because Robinhood is already one of the best places to invest for free. Adding in this feature makes them a more robust investing platform."

According to Investopedia:
Who Robinhood Is For
Robinhood is best suited for newcomers to investing who want to trade small quantities, including fractional shares, and require little in terms of research beyond seeing what others are trading. Robinhood's overall simplicity makes the app and website very easy to use, and charging zero commissions appeals to extremely cost-conscious investors who trade small quantities. That said, the offerings are very light on research and analysis, and there are serious questions about the quality of the trade executions. 

Pros
Trading costs are very low and cryptocurrency trades can be placed in small quantities
Very simple and easy to use
Customers have instant access to deposited cash

Cons
Trades appear to be routed to generate payment for order flow, not best price
Quotes do not stream, and are a bit delayed
There is very little research or resources available

 

With so many chances of getting a really good stock that may grow and grow, this is a good time to check it out for yourself.

A free stock, a little look around the world of investing ops, ... What have you got to lose?