Charles Schwab today announced client availability of Schwab
Stock Slices™, a new service that lets investors own any of
America’s leading companies in the S&P 500® for as little as $5
each, even if their shares cost more. Starting today, investors can
use the new service, which Schwab pre-announced last month, to
purchase a single stock slice or up to 10 different Stock Slices™
at once, and they can hold slices of as many S&P 500 companies
in their portfolio as they wish through multiple purchases. Schwab
Stock Slices are purchased commission-free online – just like
regular stock trades at Schwab.
“We want to make stock ownership accessible to as many people as
possible, from a new investor just getting started to someone more
experienced who may find the share price of some companies out of
reach,” said Neesha Hathi, executive vice president and head of
Schwab Digital Services. “Stock Slices allows anyone to invest
using fractional shares, and we’re excited by the possibilities
inherent in this functionality to enhance how clients invest.”
Schwab Stock Slices will give investors the power to build a
portfolio of stocks for a small fraction of what the total price
would be otherwise. For example, for just $25, an investor could
own pieces of Apple, Amazon, Facebook, Google, and Netflix when
purchasing one full share of each would otherwise cost a total of
approximately $4,800.*
How Schwab Stock Slices Work
Once someone selects the single stock or collection of stocks
they want to purchase, the total dollar amount invested is split
evenly across each stock, and slices of shares can be as narrow as
four decimal places. For example, a $50 investment across five
stocks would generally appear as a $10 purchase of each stock, and
the order would show the number of shares or fraction of shares
that $10 would buy based on stock prices at the time of
execution.
When a trade order is executed via Schwab Stock Slices, each
stock fraction appears in a client’s brokerage account. Schwab
Stock Slices is available in retail Schwab brokerage, custodial,
and individual retirement accounts (IRAs). Schwab clients also have
access to a range of educational resources and research including
stock screeners and Schwab Equity Ratings®, the firm’s proprietary
method for rating stock performance.
Because Schwab custodial accounts are eligible, investors can
use Schwab Stock Slices to get their children or grandchildren
engaged with investing in an accessible and educational way. Once a
Schwab custodial account is open and funded, the custodian can
purchase stocks in small dollar amounts in the same way they would
in a traditional brokerage account. A downloadable card can be
personalized and given to a minor to let them know about the stock
purchase on their behalf.
More information about Schwab Stock Slices is available at
Schwab.com/StockSlices.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
The Charles Schwab Corporation (NYSE: SCHW) is a leading
provider of financial services, with more than 360 offices and 12.9
million active brokerage accounts, 1.7 million corporate retirement
plan participants, 1.4 million banking accounts, and $3.8 trillion
in client assets as of April 30, 2020. Through its operating
subsidiaries, the company provides a full range of wealth
management, securities brokerage, banking, asset management,
custody, and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and
affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds;
financial planning and investment advice; retirement plan and
equity compensation plan services; referrals to independent,
fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles
Schwab Bank (member FDIC and an Equal Housing Lender), provides
banking and lending services and products. More information is
available at www.schwab.com and www.aboutschwab.com.
*Approximate share prices as of June 1, 2020
All corporate names are for illustrative purposes only and are
not a recommendation, offer to sell, or a solicitation of an offer
to buy any security.
Schwab Stock Slices is not intended to be investment advice or a
recommendation of any stock. Investing in stocks can be volatile
and involves risk including loss of principal. Investors should
consider their individual circumstances prior to investing.
The standard online $0 commission does not apply to trades
placed through a broker ($25) or by automated phone ($5). See the
Charles Schwab Pricing Guide for Individual Investors for full fee
and commission schedules.
Investors and clients should consider Schwab Equity Ratings as
only a single factor in making their investment decision while
taking into account the current market environment.
The “S&P 500® Index” is a product of S&P Dow Jones
Indices LLC or its affiliates (“SPDJI”), and has been licensed for
use by Charles Schwab & Co., Inc. (“CS&Co”). Standard &
Poor’s® and S&P® are registered trademarks of Standard &
Poor’s Financial Services LLC (“S&P”); Dow Jones® is a
registered trademark of Dow Jones Trademark Holdings LLC (“Dow
Jones”). Schwab Stock Slices is not sponsored, endorsed, sold or
promoted by SPDJI, Dow Jones, S&P, or their respective
affiliates, and none of such parties make any representation
regarding the advisability of using Schwab Stock Slices or
investing in any security available through Schwab Stock Slices,
nor do they have any liability for any errors, omissions, or
interruptions of the S&P 500 Index.
(0620-0DLK)
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Michael Cianfrocca Charles Schwab 415-930-3651
michael.cianfrocca@schwab.com
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