A fractional share is a part of a whole share. In simpler terms, instead of buying a complete share, you can own a fraction of it. This enables investors to diversify their portfolios with smaller amounts of money, making it more accessible and flexible.  Internationally this is an accepted practice and investors can invest in fraction of shares, but in India except for certain ETF's fraction shares cannot be owned by the share holders.  Fractional shares which result out of corporate actions like splits, bonuses or corporate reorganisations are transferred to an escrow account by the company and later sold in the market and proceeds distributed among the fractional shareholders in the ratio of their fractional holdings.  

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