EasyEquities facilitates fractional share investing through Fractional Share Rights (FSRs), allowing investors to purchase portions of shares without needing to buy whole units. This approach democratizes investing, enabling participation with smaller capital amounts.

When an investor decides to sell a large volume of fractional holdings, EasyEquities manages the process by aggregating these fractional shares and executing trades in the open market. The platform sets transaction limits based on the liquidity of each share, ensuring that large orders do not adversely impact market prices. Liquidity refers to how easily an asset can be converted into cash without affecting its market price. High liquidity means there is a substantial market with numerous buyers and sellers, facilitating smoother transactions. By setting transaction limits, EasyEquities ensures that the sale of large volumes of fractional shares is conducted efficiently, maintaining market stability and protecting investors from significant price fluctuations.

It’s important to note that while EasyEquities strives to provide seamless transactions, the actual execution of large sell orders may be influenced by the underlying market liquidity of the specific securities involved. In markets with lower liquidity, selling large volumes, even of fractional shares, might take longer and could potentially impact the execution price. Investors should also be aware that the settlement period for funds from a sale is typically five business days, during which the proceeds are not immediately available for withdrawal but can be reinvested in other instruments on the platform.

In summary, EasyEquities manages the liquidity of fractional shares by aggregating orders and setting transaction limits based on the liquidity of each share. This approach ensures that large-volume sales are executed efficiently, maintaining market stability and protecting investors from significant price fluctuations.