Fractional Shares have not been integrated into Robinhood for that long. In 2019, Robinhood allowed its users to invest in traditional investment options for as little as $1. This allows the everyday individual to start building a portfolio for the long term. For example, If you invest $1 in any stock that gives out a dividend. You will receive a dividend proportional to the amount of money you invested regardless of whether or not you actually own 1 share. This allows slow, but constant growth especially if you invest in stocks that have monthly dividends.
Robinhood is trying it’s best and quite successfully I might add to live true to their motto of “Innovation for All”. Fractional Shares are an important aspect of that. People can invest any amount of money (above a dollar) into well known stocks such as apple or amazon and gain partial gains based on amount invested. Dividends are given proportional to amount of stock. Overall, Robinhood continues to improve and be a truly “for the people” institution. They are showing that investing is difficult but it doesn’t have to be impossible. Anyone can do it at any time.
