Are fractional shares halal

Assalamo alaykoum

Is it permissible to buy fractional shares? Say I want to invest in Google, but since the price of a full share is pretty high, I buy 0.25 of a share. I don’t think certificates are issued for fractional shares but we do received dividend. Is this shariah compliant?

Jazak allah kheir

Wa alaykum salaam,

Fractional shares in and of themselves are fine. Brokers essentially hold shares as nominees for traders, with legal title vested in the brokers and beneficial ownership with the traders. Brokers therefore attribute smaller portions of shares internally to individuals.

Allah knows best

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