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I am an investor from Brazil and I would like to know how fractional shares works in the US Market.

Is this operation specific to some brokerage firms? When I place a trade order, is it executed immediately? Or I have to wait until the end of the day in fractional shares only.

I tried to open some accounts, but I don't have US address.

D Stanley
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Jonathan Lousado Silva
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  • Your question is titled to indicate you're asking about fractional shares but the body of your question is about how orders are executed on the market. Can you clarify? Is your question about placing a buy order for a fractional share of a stock? – FrankRizzo Nov 28 '19 at 14:16
  • Hi FrankRizzo, thank you! Sorry, my spelling correct changed my text. I am trying to understand how the fractional share works. I know that the brokerage firm buys the stock and divide them with the investors. But, if the brokerage firm receives only one order of 0.9 share, what will the brokerage firm do with the rest (0.1)? – Jonathan Lousado Silva Nov 28 '19 at 17:27
  • @JonathanLousadoSilva is it not just possible for them to hold the remaining fraction till someone else comes along that also buys a fraction? This means that on average the broker needs to keep 0.5 share of every stock. This is of course not pennies, but for the larger brokers this shouldnt be an issue. – Ger Nov 29 '19 at 19:33

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