fractional shares
USA
Shares issued by a corporation that equal less than one full share of stock. Fractional shares are often issued in connection with stock-for-stock mergers, stock dividends, reverse stock splits and other similar corporate actions.
Corporations may, but are not required to, issue fractional shares. If a corporation elects not to issue fractional shares, it must make other arrangements, such as cashing them out for fair value or issuing scrip.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Fractional ownership — In business, fractional ownership is a percentage share of an expensive asset. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing.… …   Wikipedia

  • Fractional Share — A share of equity that is less than one full share. Fractional shares usually come about from stock splits, dividend reinvestment plans (DRIPs) and similar corporate actions. Normally, fractional shares cannot be acquired from the market.… …   Investment dictionary

  • fractional share — stocks amounting to less than one full share>, usually resulting from splits , acquisitions, exchanges, or dividend reinvestment programs . Bloomberg Financial Dictionary * * * fractional share fractional share ➔ Share * * * fractional share… …   Financial and business terms

  • Fractional Jets — is a common term for fractional aircraft ownership. The first such program was launched in 1986 by NetJets, which continues to dominate the industry. Other providers include business jet operators CitationShares, Flexjet,… …   Wikipedia

  • Fractional financing — Fractional real estate ownership financing takes two forms: Traditional Timeshare and Larger Share Fractional OwnershipFractional mortgages for shares of 1/26 ownership or 2 weeks or less are considered timeshare financing, and is often provided… …   Wikipedia

  • fractional entitlements — The fractions of shares to which shareholders are entitled on a rights issue. If the rights issue is a three for two rights issue (meaning that shareholders who have two existing shares are entitled to subscribe for three new shares) then… …   Law dictionary

  • Fractional Ownership — Percentage ownership in an asset. Fractional ownership shares in the asset are sold to individual shareholders who share the benefits of the asset such as usage rights, income sharing, priority access and/or reduced rates. The usage benefits that …   Investment dictionary

  • Fractional reserve banking — Banking A series on Financial services …   Wikipedia

  • fractional share — Unit of stock less than a full share. This term comes into use with a stock dividend in an instance for example where an owner of 75 shares receives a 10% stock dividend. That part or portion of a share of stock indicated on a right or warrant as …   Black's law dictionary

  • Dividend reinvestment plan — A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor s… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.