Carta now supports fractional shares. Whether you're a C-Corp, LLC, or private equity fund, you can manage your fractional shares on Carta. Fractional shares are supported up to 20 decimal places.
Here are a few scenarios where fractional shares are commonly used.
Stock splits may generate certificates that have decimal share quantities. Now our platform allows users to perform any stock splits without worrying about fractional shares.
Having fractional shares is an optimal solution to reinvest dividend cash immediately. Companies that allow Dividend Reinvestment Plans (DRIP) will benefit from having fractional shares.
Mergers and acquisitions (M&A)
During a merger or acquisition, common stock is typically combined using a conversion ratio. The result may leave shareholders with fractional shares. Supporting fractional shares ensures that no stakeholders lose out on a portion of their stock during these events.
Fractional shares will look like this in your cap table: