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The only way to sell fractional shares is through a major brokerage firm, which can join them with other fractional shares until a whole share is attained. If the selling stock does not have a high demand in the marketplace, selling the fractional shares might take longer than hoped.
There are no major drawbacks to fractional shares. But it is worth taking into account the fact that this does not really increase profit potential by itself. A larger investment in a single share that goes up in value is of more benefit than a smaller one in multiple stocks that do not go anywhere or that go down.
A fractional share is a portion of a stock that is less than one full share and is typically a result of corporate actions such as stock splits or bonus shares. Fractional shares cannot be traded in the market and cannot be bought or sold.
You can place market or limit orders, good for the day of the trade only. Fractional shares or dollar-based orders are eligible for real-time execution during market hours (approximately a.m. to p.m. ET) on normal trading days, and they may only be placed while the market is open.
Transferability: If you want to transfer your account or specific share positions to another broker, only whole shares can be transferred. Your fractional shares that cannot be transferred or reorganized will be liquidated at prevailing market prices, and the proceeds will be credited to your account.
Fractional shares are worth it if you want to start investing with little money and have your eye on some expensive shares you wouldn't normally be able to buy. They're also powerful tools for diversifying your portfolio very quickly.