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https://www.marketwatch.com/story/schwabs-plan-to-offer-fractional-shares-starting-in-june-is-a-shot-across-the-bow-at-robinhood-stash-2020-05-05

Schwab's plan to offer fractional shares starting in June is a shot across the bow at Robinhood, Stash

2020-05-05 00:00:00, Mark DeCambre, MarketWatch

Content Categorization
/Finance/Investing
/Business & Industrial
/News/Business News

Word Count:
953

Words/Sentence:
40

Reading Time:
6.35 min

Reading Quality:
Adept

Readability:
13th to 15th

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Katz said "my team does see fractional share sales as an opportunity to engage our next-generation clients."

"In other words, the children and grandchildren of our clients could start to get their foot in the water and learn about investing on a small-dollar basis through the advent of fractional shares," he explained.

Schwab

SCHW,

+2.33%

said it would allow investors on its platform to own partial shares for as little as $5 starting June 9, with investors able to buy a so-called stock slices, or up to 10 different companies at once for $0 commission.

Some analysts believe the advent of fractional share trading could also pave the way eventually for exchange-traded funds to be used in retirement plans like 401(k)s, typically the domain of mutual funds.

Discount brokerage Charles Schwab on Tuesday announced that it will offer trading in fractional shares of individual stocks as soon as June, delivering on a promise made by its founder back in October, while providing competition for microbrokerages like Robinhood and Stash who have drawn an increasingly younger demographic.

Microinvesting app Stash, which was founded in 2015, also offers fractional-share trading in individual stocks and ETFs, and the robo-advisory firm Betterment allows investors to purchase slices of ETFs.

Keywords
Retirement Planning, Trusts/Funds/Financial Vehicles, P 500 Index, Quote: US:AMZN, PageType: Article, FIRST_PUBLISH_HEADLINE|Schwab’s plan to offer fractional shares starting in June is a shot across the bow at Robinhood, Financial Services, Column: Market Extra, Subject: Personal Finance, Personal Finance, online brokers, Industry: Financial Investments, Unit Trusts/Mutual Funds, Columns, US:SCHW, Investing/Securities, Quote: US:GOOGL, article_normal, Quote: US:SCHW, investing, Subject: Retirement Planning, Industry: Investing/Securities, Industry: Online Brokers/After Hours Trading, trusts, Quote: US:TSLA, Template: Normal, Subject: Columns, Industry: Unit Trusts/Mutual Funds, Charles Schwab Corp., Online Brokers/After Hours Trading, Quote: US:SPX, Industry: Financial Services, columns, financial services, unit trusts, Subsection: U.S. & Canada, exchange traded funds, funds, NASDAQ 100 Index (NASDAQ Calculation), US:DJIA, Stash, Industry: Exchange Traded Funds, Exchange Traded Funds, Quote: US:DJIA, Financial Investments, US:SPX, US:NDX, after hours trading, Quote: US:NDX, Quote: US:AMTD, personal finance, financial vehicles, securities, DocType: 103, financial investments, ArticleId: 08947AEE-8EE8-11EA-905F-D23A5B914D38, HEADLINE|Schwab’s plan to offer fractional shares starting in June is a shot across the bow at Robinhood, Industry: Trusts/Funds/Financial Vehicles, retirement planning, mutual funds, Dow Jones Industrial Average, S&amp, Quote: US:ETFC

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