When a SatrixNOW client invests in a fraction of a share ( Fractional Share Right ), Satrix acts as a principal to a contract for difference (CFD) issued to the investor.

This CFD gives the investor a contractual claim against Satrix to the economic benefits and risks associated with share ownership (price movements and dividends) without having ownership rights in the underlying share.

If over time, an investor enters into enough CFD Transactions with the same underlying share so that he/she acquires rights to 100% of a share, then the CFD Transactions will be closed out, and a whole share will be delivered to you

Unlike whole shares Fractional Share Rights (FSRs) do not carry any voting rights.