Fractional share-only positions are impacted by corporate actions in a variety of ways.
Dividends for fractional share-only positions will be passed on to you in proportion to your ownership interest. However, dividends are only supported out to $0.01, so different treatment may apply to any amount smaller than that, or non-divisible amounts (based on the .001 share limitation).
For customers participating in Fidelity’s Dividend Reinvestment Program, fractional dividends will reinvest in the same manner as full shares.
Customers holding fractional share-only positions will participate in mandatory corporate actions (e.g., splits, reverse splits, etc.). Different treatment may apply to any fractional share amounts that cannot be split.
You will not be able to participate in proxy voting or participate in most voluntary corporate actions for the fractional share portion of a position.
Please see the Fidelity Account Customer Agreement for more information.