fractional shares
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.

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