What are the most expensive stocks in India for retail investors? The answer will be – MRF, Page Industries, Honeywell Automation, Three M India and Shree Cement etc. etc. The price of one share is between Rs 25 thousand to Rs 1 lakh 10 thousand. Can you buy even a single share of their shares at less than their fixed price or market price? Never in the Indian stock market. Now consider the shares of Warren Buffett’s company Berkshire Hathaway Company.
The price of one of its shares is six lakh 70 thousand dollars, which is equal to approximately Rs 5 crore 69 lakh. You can invest even by investing a few thousand rupees in this stock whose share is worth crores of rupees. Similarly, you can also invest a few thousand rupees in the shares of Apple company worth lakhs of rupees. But this is possible only in the American stock market.
What is Fractional Equity in American Stock Market
There is a system of fractional equity in American stocks to buy millions of shares of companies like Berkshire Hathaway or Apple. That means you can buy less than one share of a company. This means that you can invest even in a small part of a share. Understand it more easily, many retail investors can buy small pieces of a share or many retail investors can together become owners of the entire share.
Fractional equity is legally recognized in the American stock market. The US Securities and Exchange Commission approves it. Which is not in the Indian stock market. Therefore, a small portion of any one share cannot be bought in the Indian stock market.
You can buy the world’s most expensive stocks
Due to fractional equity, you can buy the world’s most expensive stock in America without paying the full amount for a share. Even shares of companies included in Standard & Poor and Nasdaq 100 index can be bought for up to Rs 500. Whereas their shares are quite expensive.
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