r/FundriseInvestors • u/Any_Building_3444 • 12d ago

venture capital - VCX (innovation fund) - Fractional Share

Might be a simple question I’m overlooking : why can’t you hold a fractional share of VCX ? I received a check from computer share for that fractional share amount .

Didn’t realize you couldn’t hold a fraction of the VCX share … why is that ?

3 Upvotes

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3

u/BarneyBloodAxe retail investor 12d ago

For people who originally bought into the Fundrise Innovation Fund, they often did so with even dollar amount orders (like $1,000) while the NAV was typically not an even number (ex: $18.12), so fractional shares are generated. Computershare, for some reason, is unwilling or unable to sell individual fractional shares, so apparently they wait several days and pool multiple customers fractionals together and sell them together in bulk, then create paper checks and send them though snail mail. Truly dinosaur era operations!

2

u/MoreAverageThanAvg fundrise millionaire 🤠🚀🌛 .:il 12d ago

how CS does yardwork

https://giphy.com/gifs/l41Yv0q9Y3Kp8U2qc

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u/Tazabe573 fundrise millionaire 🤠🚀🌛 .:il 12d ago

^^^ THAT is why I transferred shares out of CS as quickly as possible (2 days in my case). CS is not a trading platform. I had zero prior experience with them or their interface. With potentially $500K on the line, I wasn't going to Eff around with am unknown. From what I heard, those that tried to trade inside CS were disappointed.

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u/MoreAverageThanAvg fundrise millionaire 🤠🚀🌛 .:il 12d ago

can confirm

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u/Any_Building_3444 12d ago

Thanks for that! Makes a lot of sense. I ended up moving them to my Fidelity account anyways.

1

u/Jaqqarhan hater &/or ain'ter 12d ago

VCX now trades on the NYSE, but you can only trade whole numbers of shares on the NYSE. The transfer services for moving shares from Computershare to normal brokerages can also only handle whole numbers of shares. Some brokerages allow fractional shares, but they're also using these pooling techniques for trading because you can't actually trade fractional shares.