can you buy 50 shares of stock? A practical guide

Can you buy 50 shares of stock? A practical guide

Short answer: can you buy 50 shares of stock — yes, in most cases you can buy 50 shares of a publicly traded company if you have sufficient funds and use a brokerage that supports that security. This article explains what that means in practice, the difference between whole and fractional shares, broker rules and fees, order execution, corporate rights, account transfer issues, tax and recordkeeping implications, and common strategies for buying a specific number of shares.

Overview

Buying stock means acquiring an ownership stake in a public company. When you ask "can you buy 50 shares of stock?" you are asking whether an investor can purchase 50 whole shares (or the dollar-equivalent via fractional shares) of a given ticker, and what practical, regulatory, and broker-specific rules affect that transaction.

Generally, the basic answer is: yes — you can buy 50 shares of stock if you have the funds and your brokerage supports trading in that security. However, factors that can change execution or outcome include whether fractional shares are required or permitted, broker account rules and minimums, order type and timing, fees or commissions, settlement and transfer rules, and corporate share-class specifics that can affect voting and other rights.

This guide covers those topics in detail and includes step-by-step instructions, examples, and a short FAQ to answer common user questions. Where appropriate, we reference regulator and broker practices (e.g., FINRA guidance and major broker policies) and note up-to-date market context. As of Jan 16, 2026, market activity in some high-profile names was noteworthy — for example, Barchart reported sizable institutional moves into advanced-air-mobility stocks — but this guide remains focused on the mechanics of buying a defined number of shares rather than market timing or advice. (As of Jan 16, 2026, according to Barchart reporting, large ETFs increased exposure to select eVTOL names; see References.)

Whole shares vs. fractional shares

Whole shares

A whole share is the standard unit of stock ownership: one full unit of a company’s equity as listed under its ticker. When brokers accept orders for integer quantities, they treat orders like 1, 2, 50, or 1,000 shares as orders for whole shares. If you place an order to buy exactly 50 shares of stock and the broker supports that ticker, the broker will attempt to execute an order for 50 whole shares at available market prices or at your specified limit price.

Key points about whole shares:

• Ownership: Whole-share owners usually receive full economic entitlements — dividends paid per share, proportional claim on corporate distributions, and voting rights attached to each share class.
• Execution: Brokers execute whole-share orders through exchanges or alternative trading systems. Market hours and liquidity affect the price you receive.
• Transferability: Whole shares are typically transferable in-kind between brokers during an account transfer (ACATS or equivalent in the U.S.).

Fractional shares

Fractional shares divide a whole share into smaller portions (for example, 0.25 or 0.009 shares). Fractional-share services let investors buy by dollar amount (e.g., $100 of a $1,000 stock = 0.1 share) or accumulate fractions automatically via dividends and DRIPs (dividend reinvestment plans).

Why brokers offer fractional shares:

• Accessibility for high-priced stocks (makes owning a stake affordable).
• Dollar-cost averaging (automated monthly or periodic purchases by dollar amount).
• Dividend reinvestment (DRIPs often create fractional positions).

Limitations and considerations with fractional shares:

• Transfer: Fractional shares frequently cannot be transferred in-kind between brokerages; brokers often liquidate fractional holdings or convert fractions to cash during transfers, potentially creating taxable events. FINRA and broker policies outline operational approaches to fractions.
• Voting: Many brokers aggregate fractional positions for voting or may exercise proxy voting differently for fractional holders. Economic benefits (dividends) are generally allocated proportionally, but direct voting rights can be limited or processed via the broker’s collected votes.
• Availability: Not all brokers offer fractional trades across all securities. Coverage may be limited to U.S.-listed common stocks and ETFs; some ADRs, certain classes of stock, or illiquid names may be excluded.

Brokers such as Charles Schwab and Fidelity (see References) have public fractional-share programs; FINRA provides guidance on handling fractional-share operations and best practices for brokers.

Broker policies and availability

Account opening and funding requirements

Most modern retail brokers have eliminated hard account minimums, letting customers open taxable brokerage accounts with zero minimum cash balance. That said, certain account types (IRAs, margin accounts) may require additional forms and margin-eligibility criteria. Some promotional accounts or managed accounts impose minimums.

Practical notes:

• Funding: To buy 50 shares of stock, you must have settled funds or margin buying power at the time of the trade. Cash-account purchases require settled cash; margin accounts allow buying on margin subject to initial margin requirements.
• Settlement: Stock purchases settle on trade date +2 business days (T+2) in the U.S. until regulatory changes say otherwise. Selling within settlement periods may create unsettled-funds issues if trades are not properly funded.

Broker-specific fractional/share policies

Each broker sets policies on which securities can be bought fractional, whether fractional orders are executed in real time or batched, and how corporate actions (splits, spin-offs, share exchanges) are handled for fractional holdings. Check broker terms for exclusions, order-routing practices, and whether fractional shares count toward promotional offers or cost-basis reporting.

When planning to buy 50 shares of stock, verify with your chosen broker whether that ticker is supported and whether fractional trading is available if you prefer to buy by dollar amount rather than share count.

Fees and commissions

The industry trend over the last several years has been zero-commission trading for U.S.-listed stocks and ETFs at many retail brokers. That change made buying small quantities of shares more economical for retail investors because commissions were once a big percentage drag on small trades.

Possible fees you may still encounter:

• SEC and exchange transaction fees (usually passed through and small).
• Out-of-network or broker-assisted trade fees if you require special handling.
• Margin interest if buying on margin.
• Account maintenance or IRA fees (less common at mainstream brokers).

Always read your broker’s fee schedule. Even with zero commissions, factors like bid-ask spread and execution quality affect effective cost.

How to buy 50 shares — practical steps

Selecting a broker and account type

1. Choose a brokerage that supports the securities you want and offers the account type you need (taxable account, Roth or Traditional IRA, custodial account for minors, etc.). Bitget offers brokerage and wallet services that may suit investors seeking seamless custody and order execution — confirm the supported asset types and account features when you sign up.
2. Consider whether you need margin, automatic investing, or DRIPs. Margin allows purchases with leverage but increases risk.
3. Verify identity requirements and fund the account through bank transfer, wire, or other supported funding methods.

Placing an order (step-by-step)

1. Choose the ticker symbol for the stock you want to buy.
2. Decide whether you will buy by number of shares (e.g., 50 shares of stock) or by dollar amount (if your broker supports fractional shares).
3. Select order type: market (execute at market price) or limit (only execute at your specified price or better). For larger or less liquid orders, limit orders help control execution price.
4. Enter the quantity (50 shares) or dollar amount; check preview for estimated cost including fees.
5. Submit during normal market hours or use extended-hours options if your broker supports them (note extended-hours trades can have wider spreads and different execution rules).
6. Confirm execution and review trade confirmation and cost-basis reporting in your account.

Calculating cost and buying by dollars vs. shares

Simple calculation for whole shares:

• Share price × 50 = required funds (plus any fees). Example: 50 shares × $20.00 = $1,000.00.

If buying by dollar amount with fractional shares:

• Dollar amount / share price = shares purchased. Example: $1,000 / $123.45 ≈ 8.096 shares (if fractional allowed).

If you intend to buy exactly 50 shares but only have a dollar target, reverse-calculate: desired shares × current share price = funds needed. For precise execution with market volatility, consider a limit order or a small price cushion in your funding.

Order types and execution details

Market orders vs limit orders

• Market order: executable immediately at the best available price. Good for immediate execution but subject to price movement and possible slippage for volatile or thinly traded stocks.
• Limit order: set the maximum price you will pay (for buys) or minimum price you will accept (for sells). Good for price control but not guaranteed to fill.

Choose the order type based on urgency, liquidity, and price sensitivity. If your goal is strictly to purchase exactly 50 shares at a controlled price, a limit order helps ensure you do not pay more than intended.

Round lots vs odd lots

• Round lot: traditionally one trading unit of 100 shares. Many market rules and historical systems referenced round lots for priority and reporting.
• Odd lot: any trade under 100 shares (e.g., 50 shares) considered an odd lot. Historically, odd-lot trades could have different pricing or routing, but modern market structure treats odd lots routinely; execution quality for a 50-share trade is generally the same as any small order, though very thinly traded securities can still experience price impact.

Aggregated/order batching and execution timing

Some brokers aggregate fractional orders and batch-execute them at set times to optimize routing and internal matching. That can mean fractional-share orders might not execute immediately at the displayed real-time price; instead, they can be processed during the trading day or at market close depending on broker policy. Whole-share market orders typically execute immediately via market centers and dark pools.

Ask your broker whether fractional orders are batched and when they execute if real-time execution matters to you.

Transferability and account transfers

If you later move your account to another brokerage, whole shares typically transfer in-kind (ACATS in the U.S.), preserving lot-level tax lots and cost basis. Fractional shares often cannot be transferred in-kind; the original broker may either: (a) liquidate fractional positions and transfer cash proceeds, or (b) round fractional holdings into whole shares if possible, or (c) convert fractional ownership into a cash equivalent for transfer.

This operational limitation can create taxable events or small timing differences on transfer value. Check both the sending and receiving brokers’ policies before moving accounts.

Corporate rights and ownership implications

Voting rights and corporate actions

Owning 50 shares of stock typically gives you ownership rights proportionate to your shareholdings in that share class. That includes dividends and, for voting shares, proportional voting rights on matters put to shareholder votes.

For fractional shares, voting practices differ:

• Some brokers aggregate fractional positions and vote proxies proportionally on behalf of fractional owners.
• Other brokers may not pass through direct voting rights for fractions and instead manage votes at their discretion.

For corporate actions (stock splits, rights offerings, spin-offs), brokers will apply their operational rules. Fractional entitlements from splits or spin-offs may be paid in cash if the broker cannot issue fractional new securities.

Ownership thresholds and control

Large ownership thresholds (e.g., >5% or majority ownership) trigger regulatory filings and takeover rules. Owning 50 shares is far below institutional thresholds for control, but awareness of share classes is important: certain share classes carry different voting power per share.

If you plan to accumulate a controlling stake in a company, regulatory filings (Schedule 13D/G and others) and takeover rules become relevant; for most retail investors buying 50 shares of stock, these rules are not applicable.

Tax, reporting, and recordkeeping

Purchases are not taxable events themselves; taxes are triggered by dividends (taxable when paid) and by sales (capital gains or losses). Brokers report cost basis and sales proceeds on Form 1099-B in the U.S., and you should retain confirmations for tax reporting and wash-sale tracking.

Selling fractional shares follows the same tax principles: you recognize gain or loss based on cost basis for the fractional portion. Keeping clear statements helps with accurate tax filing.

If a broker liquidates fractional shares when you transfer accounts, that liquidation can create taxable gains or losses — another reason to review transfer rules before moving holdings.

Practical considerations and investing strategy

Position sizing and diversification

Whether buying 50 shares of stock is appropriate depends on your portfolio size, risk tolerance, and diversification goals. For example, 50 shares of a $2 stock is a much smaller dollar exposure ($100) than 50 shares of a $200 stock ($10,000). Always consider position size relative to total portfolio value.

Dollar-cost averaging and DRIPs

Dollar-cost averaging (regularly investing a set dollar amount) can help smooth entry prices over time. DRIPs (dividend reinvestment plans) may automatically buy fractional shares to reinvest dividends, allowing compounding even if whole shares are not affordable.

Cost-efficiency and slippage

Even with zero commissions, effective cost includes bid-ask spread and execution quality. Low-liquidity stocks can show significant slippage for market orders. Using limit orders, monitoring spread, and executing in normal market hours can reduce implicit costs.

Risks and limitations

• Execution risk: Market orders in volatile conditions can fill at unexpected prices.
• Liquidity risk: Thinly traded names may have wide spreads and price impact.
• Broker constraints: Not all brokers support all securities or fractional trading. Transfer rules can differ.
• Corporate reorganizations: Stock splits, mergers, or spin-offs may result in cash settlements or fractional processing.
• Regulatory protections: SIPC coverage and broker safeguards apply to custodial accounts; check the broker’s disclosures for limits and protections.

Frequently asked questions (FAQ)

Q: Is there a minimum number of shares I must buy? A: Most brokers allow buying one whole share or even fractional shares by dollar amount. There is typically no universal minimum number like 50; specific broker rules may apply.

Q: can you buy 50 shares of stock even if the stock price is high? A: Yes — if you have sufficient funds. If you lack funds for whole shares of a high-priced name, fractional-share services (if offered) let you buy by dollar amount instead.

Q: Will 50 shares always give me voting power? A: If the shares are of a voting class, holding 50 shares gives you proportional voting rights. Some share classes have limited or no voting; always check the company’s share class structure and your broker’s proxy-voting policies.

Q: What happens if I buy fractional shares and later move brokers? A: Many brokers cannot transfer fractional shares in-kind; they may liquidate fractions and transfer cash. This can create small taxable events or timing differences. Verify policies before transferring.

Q: Are odd-lot orders (like 50 shares) treated differently than round lots? A: Historically yes, but modern market structure treats odd-lot orders routinely. Odd lots may be routed differently in some venues but are commonly executed without special penalties. Execution quality can vary by liquidity and order routing.

Example calculations and scenarios

1. Buying 50 shares of a $20 stock

• 50 × $20.00 = $1,000.00. With a brokerage offering zero commissions, the primary additional cost would be bid-ask spread and small regulatory fees if applicable.

1. Buying $1,000 of a $123.45 stock (fractional allowed)

• $1,000 / $123.45 ≈ 8.096 shares (broker may round to permitted decimal places). If you want exactly 50 shares but have $1,000 only, you must either add funds or use fractional/share services if available.

1. Buying 50 shares on margin (hypothetical)

• If initial margin is 50%, you may only need $1,000 in cash to buy $2,000 worth of shares, but margin interest and maintenance requirements apply. Margin increases both upside and downside risk.

Regulatory and operational references

Regulatory and broker guidance (summarized):

• FINRA offers operational guidance on fractional shares and broker responsibilities.
• Broker guides (e.g., Schwab, Fidelity) explain fractional-share programs and voting/treatment rules.
• Investopedia, NerdWallet, Bankrate, Motley Fool provide practical consumer-facing explanations about fractional shares, odd-lot trading, and broker comparisons.

Market context note (timely reporting)

As of Jan 16, 2026, according to Barchart reporting, institutional ETF flows increased exposure to select advanced-air-mobility names and trading in some small-cap and growth names showed elevated volume. Those market moves illustrate that demand and institutional participation can drive price volatility — a reminder that execution price for a 50-share purchase can vary with market conditions and institutional activity. This article focuses on mechanics, not market timing or investment recommendations. (As of Jan 16, 2026, Barchart reported that ARK’s ETF increased holdings in certain eVTOL names and that trading volume and price moves followed; see References.)

Practical checklist: Buying 50 shares of stock

1. Confirm ticker availability with your broker.
2. Check whether you want whole shares or fractional-dollar purchases.
3. Fund your account with settled cash or ensure margin availability.
4. Choose order type (market vs limit) and set quantity to 50 shares.
5. Review estimated cost, including spreads and any small fees.
6. Submit order during desired session; confirm execution and review the trade confirmation.
7. Keep records for tax and portfolio tracking.

More on custody and platform choices (Bitget note)

If you are evaluating platforms, consider custody, order execution, and wallet integration. Bitget provides brokerage and wallet services and can be an option for retail investors who want integrated custody and trading features. When choosing Bitget or any broker, confirm supported securities, fractional-share availability, account protections, and customer support.

Risks reminder and compliance

This article explains execution mechanics and practical considerations. It is not investment advice and does not recommend buying or selling any specific stock. Each investor should consider their own financial circumstances and consult a licensed professional for personalized advice.

Frequently cited source summary

Sources summarized in this article include regulator guidance (FINRA), consumer and broker education (Investopedia, Fidelity guides, Charles Schwab materials), and broker-comparison resources (NerdWallet, Bankrate, Motley Fool). For operational and up-to-date broker policies, review your broker’s published terms and disclosures.

References and further reading

• Investopedia fractional-share guides and brokerage explainers (investor education)
• Charles Schwab fractional and stock-slice program documentation (broker policy examples)
• FINRA guidance on fractional share handling and broker responsibilities
• Fidelity’s fractional-share guide and investor education material
• NerdWallet and Bankrate brokerage comparisons and how-to guides
• Motley Fool articles on fractional shares and trading strategy
• Money StackExchange community discussions on odd-lot and fractional-share mechanics
• Barchart market reporting (As of Jan 16, 2026) for timely market examples and institutional flow context

Sources listed above provide practical details; always verify current broker policies since offerings change frequently.

Final notes — next steps

If your immediate question is "can you buy 50 shares of stock?" the practical takeaway is simple: yes — provided you have sufficient funds and your broker supports trading that security. To act now, pick a broker, verify the ticker and order type you prefer, fund the account, and place a market or limit order for 50 shares. For integrated custody and wallet features, consider Bitget when evaluating platforms and ensure you understand fractional-share policies and transfer rules before moving accounts.

Ready to explore trading and custody options? Open an account with a broker that fits your needs and review fractional-share and transfer policies — consider Bitget for integrated trading and wallet support.