**. . . you can’t buy a partial share of an ETF, can you?**

*You* can't buy partial shares. Well, at least *I* can't, at Schwab, anyway. But reinvested dividends result in fractional share deposits all the time, even with ETFs. *

* Some equities don't support automatic reinvesting. I'm not sure what factors affect that, but that's a different question from fractional share deposits.

What is this fractional shares concept???? I know there are fractional units in managed funds, but **we don't get fractional shares here**.

You dividend reinvestment here is rounded down to the nearest share.... anything leftover is carried forward to the next dividend.

Not entirely sure whether

*"here"* is Australia or a different brokerage (or both). I'm in the USA, and my broker is Schwab. If I had 100 shares of a $50 stock that pays a 25 cent dividend, the next trading day, after getting paid the dividend, my share balance would be 100.5 shares *; literally, a fraction of a share. No rounding until you get out past 4 digits to the right of the decimal point.**

The next time that stock pays a dividend, that fractional share will also pay a fractional dividend. I presume that fractional dividend will be rounded to the nearest cent, but to be honest, I've never bothered to check.

See:

https://www.investopedia.com/terms/f/fractionalshare.aspThis article says this magic is managed at the brokerage by accumulating fractions of a share across multiple clients so they can be sold as whole shares on the exchange. If you are using a small broker, I would suppose this might not be a service they offer regardless of your broker's country.

* Example assumes a static market price for sake of simplicity.

** It's possible they internally account for share fractions with even greater precision, and only round the figure for display purposes; though I don't know that to be the case. Same could be true, hypothetically speaking, for fractional dividends that result in fractional cents. Just speaking with my old IT propeller beanie cap on. ;) But just because it's possible doesn't mean it's a fact.

Edit to add: I just checked to confirm. I don't have even a single holding that

*doesn't* have a fractional share component. Even my MM fund has a fractional component.