What is POSFI?
Point of sale fractional investing (POSFI) is the ability of a consumer to purchase fractional investments through point of sale retail terminals.
An example: the cash register at your local supermarket can be reprogrammed so that the next time you're at the checkout counter and you get a dollar back in change you can instruct the cashier to deposit that dollar, through the cash register, directly into your own investment.
POSFI comprises two terms:
Point of sale refers to a retail purchase that occurs at a mechanical interactive terminal, such as a cash register, lottery terminal, Automatic Teller Machine (ATM), gaming machine (e.g., slot machine), internet or stand-alone device. Such terminals may be manned or automatic.
Fractional investing is purchasing an investment in a small monetary unit such as $1.00. This monetary unit represents a fraction of either the unit price at which such investments are available or the minimum investment amount required by financial institutions to transact investment purchases.