Jun 20, 2023

Investing in Stocks with Pocket Change: Fractional Shares Explained

If we’ve heard it once, we’ve heard it a thousand times.

“I don’t have enough money to invest in stocks.”

It’s a common misconception that investing in stocks is expensive and only available to those with bulging bank balances.

Explaining Fractional Shares

In fact, thinking that you don’t have enough money is one of the top reasons would-be investors are scared to start investing in the first place.

Well, we’re here to tell you that it’s not true.

With Nemo, you can start investing with even less than the price of a cup of coffee. That’s because we offer fractional shares. And as the name implies, it means that you’re able to invest in just a fraction of a share at a time.

So, let’s dig into fractional shares, and show you how you can afford to invest with pocket change.

What are fractional shares?

Everyone loves a food analogy, right?

Imagine for a moment you’re out with friends at the latest dining hotspot. It’s a new designer pizzeria offering seriously ‘grammable topping combinations. As you skim through the options, each one sounds better than the next. And then, you see it: Pizza. By. The. Slice!

This opens a whole new world of taste bud satisfaction. And with a slice being charged at a fraction of the cost of a full serving pizza, you’re in control of your total bill based on the number of slices you go for.

Snapping back to reality for a moment, we’re comparing a company’s share to a pizza. Usually, you’d expect to have to buy a whole pizza at a whole pizza price, or a full share at a full share’s cost when investing in stocks.

“Fractional shares make it possible to buy a fraction of the share, at a fraction of the share’s price.”

Fractional shares break down the perceived cost barrier by facilitating investment in any stock – even those deemed the most expensive – with practically any amount. On Nemo, the minimum investment amount is $1.

And for that $1 you could become the latest shareholder in Meta, Tesla, Amazon or any one of the more than 8,000 companies available to invest in.

Explore the stocks that professional analysts are signalling as outstanding investment opportunities? Check out the Analyst Recommended neme.

How do fractional shares work?

When you invest in fractional shares, you buy a specific dollar amount of a stock rather than a whole share.

For example, let’s say you want to invest in a pizza company and the stock is priced at $100 per share. You have $20. No problem! Nemo will automatically calculate and allocate the apportioned share based on your investment amount and the share cost. In this case, for your $20, you’d own 0.2 shares in the company.

Especially for the number crunchers, we got there by dividing the investment amount by the full share price.  So, $20/$100 = 0.2. This is the same as one fifth or 20% of a share.

The performance of fractional shares is the same as the whole share, simply at a lower price level. If the share price of the pizza company rises from $100 to $110, that’s a 10% increase. The same 10% increase would apply to your $20 investment, giving you a new value of $22. While the amounts differ, the percentage gains (or losses) are applied to fractional shares.

Hungry for an investment? Tuck into the Food & Drink neme.

Why buy fractional shares?

No more FOMO

Fractional shares make it possible for you to invest in stocks that may otherwise be financially out of reach. Whether you have $1, $10 or $100, you can invest in high-priced stocks without breaking the bank. No more FOMO, watching from the side lines as those stocks take off!

Overcoming Investment FOMO with Nemo


Ever heard the saying ‘don't put all your eggs in one basket’? Well, fractional shares make it affordable to diversify your portfolio by investing in stocks across multiple companies, sectors, or even countries. This is ideal for risk management, hedging against potential losses and increasing the potential for long-term growth.

‘Equal’ Rights

If you invest in dividend yielding stocks as a fractional shareholder, you’ll earn dividends at the same ratio as your whole share investor counterparts. For example, if the stock has an EPS (that’s Earning Per Share) of $5, an investor with 1 share will receive $5 (100% of EPS), and an investor with 0.2 share will earn $1 (20% of EPS).


Fractional shares are no different to whole shares when it comes to liquidity and can be bought or sold quickly. This flexibility allows you to adjust your portfolio holdings as needed or take advantage of market opportunities.

Start small, grow big

Even if you can only spare a few dollars each month, you can gradually build a substantial portfolio and watch it grow. It's like saving loose change in a piggy bank, but with the added potential for exponential returns.

Invest with pocket change – today!

So, what are you waiting for? With fractional shares available on Nemo, you can start your investing journey today from as little as $1. Our insightful, themed nemes curate stocks based on various industries, interests, social chatter, and global trends to make sure you never miss out on an investment opportunity again.  

Ready to invest? Create a Nemo account in under 30 seconds

Vee Tardrew

Vee Tardrew is an experienced copywriter with an extensive career in marketing within the fintech sector. She's passionate about investments, emerging technologies, and opportunities that can bring about positive change in the world. Prior to bringing her love for words to the Exinity team, Vee led content creation for a pioneering cryptocurrency investment firm for close on a decade. As a creative soul with a technical mind, Vee is adept at storytelling to simplify complex topics and won't pass up an opportunity for a tasty food analogy.