How does sharebuilder allow you to buy PARTIAL SHARES?

Question

If even has a description of it bellow or talks about it. How can you only own part of one stock though I don't get how that works? Details?????????

Note: If you are selling less than one full share of stock in total and your request is received during market hours, the partial share will be sold at the closing price for that market day. If a request is received after the market has closed, it will be processed at the closing price for the following market day.

Answer 1

Sharebuilder will not let you sell partial shares only all or full shares .Example:I have 25.54 shares of a stock..I can sale all 25.54 or a sigle amount like 18 shares or 20 shares.

Answer 2

as far as i know, sharebuilder buys temporary inventories of stocks. thats why there's a restricted list and a management fee.  the risk for them is buying stocks temporarily and then it going down in value before they resell it. of course, they probably have sophisticated hedging strategies, but you get my point. they just match you up with hundreds of other people, so if volume's good, then their risk of having to hold their stocks is very low. they are essentially creating a quasi-secondary market where both partial shares and whole shares are traded.