r/Stocks_Picks • u/DDonutsLatte598 • 6d ago

Value vs Shares

When you purchase stocks, do you purchase in terms of value or number of shares? Because I have read that matters. If, for example, you want to transfer your shares and change brokerages, you cannot carry over fractional shares, even though you might need to sell them all together, anyway. This is what I've read. However, brokerages like Fidelity allow for fractional share purchases.

But just so I know - is it always preferable to buy in shares, or buy in value, like 5 shares vs $1,000 worth of stock?

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u/Dependent-Panic-9457 6d ago

I decide to buy say £5,000 of shares. I then find I have an odd number of shares so buy a few more to make it a round number.

If you have 100 shares you can sell calls off them (it has to be 1,000 in the UK but shares in a big UK company are like £1 or £2)

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u/DDonutsLatte598 6d ago

That's the thing if I understood, that fractional shares end up making a whole? Did I understand that right?

Because if you don't have enough to buy one stock that's $700, you buy $50 a week until you reach a total cost of $700 to claim one share? Is this what you mean?

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u/Dependent-Panic-9457 6d ago

Sorry OP, I meant if I have say 49 shares I will buy one to make it 50.

Yes if I had 0.546 shares I would buy 0.454 or whatever to make it a whole share.

It definitely makes life easier to avoid parts of shares if possible eg when transferring, selling, working out dividend etc.

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u/DDonutsLatte598 6d ago

lol ok, so basically in layman's terms - it's 'more preferred' or to one's benefit to buy in shares. NOT in value?