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Schwab Announces Availability of Schwab Stock Slices™

SAN FRANCISCO–(BUSINESS WIRE)–Charles Schwab today announced client availability of Schwab Stock Slices™, a new service that lets investors own any of America’s leading companies in the S&P 500® for as little as $5 each, even if their shares cost more. Starting today, investors can use the new service, which Schwab pre-announced last month, to purchase a single stock slice or up to 10 different Stock Slices™ at once, and they can hold slices of as many S&P 500 companies in their portfolio as they wish through multiple purchases. Schwab Stock Slices are purchased commission-free online – just like regular stock trades at Schwab.

“We want to make stock ownership accessible to as many people as possible, from a new investor just getting started to someone more experienced who may find the share price of some companies out of reach,” said Neesha Hathi, executive vice president and head of Schwab Digital Services. “Stock Slices allows anyone to invest using fractional shares, and we’re excited by the possibilities inherent in this functionality to enhance how clients invest.”

Schwab Stock Slices will give investors the power to build a portfolio of stocks for a small fraction of what the total price would be otherwise. For example, for just $25, an investor could own pieces of Apple, Amazon, Facebook, Google, and Netflix when purchasing one full share of each would otherwise cost a total of approximately $4,800.*

How Schwab Stock Slices Work

Once someone selects the single stock or collection of stocks they want to purchase, the total dollar amount invested is split evenly across each stock, and slices of shares can be as narrow as four decimal places. For example, a $50 investment across five stocks would generally appear as a $10 purchase of each stock, and the order would show the number of shares or fraction of shares that $10 would buy based on stock prices at the time of execution.

When a trade order is executed via Schwab Stock Slices, each stock fraction appears in a client’s brokerage account. Schwab Stock Slices is available in retail Schwab brokerage, custodial, and individual retirement accounts (IRAs). Schwab clients also have access to a range of educational resources and research including stock screeners and Schwab Equity Ratings®, the firm’s proprietary method for rating stock performance.

Because Schwab custodial accounts are eligible, investors can use Schwab Stock Slices to get their children or grandchildren engaged with investing in an accessible and educational way. Once a Schwab custodial account is open and funded, the custodian can purchase stocks in small dollar amounts in the same way they would in a traditional brokerage account. A downloadable card can be personalized and given to a minor to let them know about the stock purchase on their behalf.

More information about Schwab Stock Slices is available at Schwab.com/StockSlices.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 360 offices and 12.9 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $3.8 trillion in client assets as of April 30, 2020. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.

*Approximate share prices as of June 1, 2020

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Schwab Stock Slices is not intended to be investment advice or a recommendation of any stock. Investing in stocks can be volatile and involves risk including loss of principal. Investors should consider their individual circumstances prior to investing.

The standard online $0 commission does not apply to trades placed through a broker ($25) or by automated phone ($5). See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

Investors and clients should consider Schwab Equity Ratings as only a single factor in making their investment decision while taking into account the current market environment.

The “S&P 500® Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Charles Schwab & Co., Inc. (“CS&Co”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Schwab Stock Slices is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of using Schwab Stock Slices or investing in any security available through Schwab Stock Slices, nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

(0620-0DLK)

Contacts

Michael Cianfrocca

Charles Schwab

415-930-3651

michael.cianfrocca@schwab.com

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