Eli5 – Robinhood sent a thing out about fractional shares being “not held”. What does this mean?

Question

Eli5 – Robinhood sent a thing out about fractional shares being “not held”. What does this mean?

In: 15

Answer 1

what did the communication say?

typically, fractional shares are a representation of an equity, but are not “Real” until they accumulate to a full share. you may not be able to sell them, though some brokerages will allow you to liquidate them, as they hold whole shares that hedge the positions and its more of a courtesy.