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How is it possible for me to invest with only $5?

These days it’s possible to start investing with just $5.

In the past, investors typically had to buy an entire share of a stock or exchange-traded fund (ETF). If the price of one share was $100, that was the smallest amount an individual investor could buy.

In the modern stock market, companies like Stash can buy one share and split it into parts (or fractional shares) for clients. That means you can put in $5 and own a little bit of a share instead of paying hundreds (or thousands) of dollars for the whole thing.

If you buy $5 of an ETF or single stock that costs $100 per share, Stash combines everyone’s purchases, buys that number of full shares, and distributes your portion of the share back. You own it!

This allows you to make small investments as you get started, giving you flexibility in how you’re putting your money to work.

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