Fractionisation is a term used in various fields, including finance, chemistry, and economics, to describe the process of dividing or breaking down a whole into smaller parts or components. It refers to the act of fragmenting or splitting something into fractions or portions that retain certain characteristics or properties of the original whole.
In the context of finance, fractionisation commonly refers to the division of an asset, such as a share, bond, or security, into smaller units to enhance liquidity and accessibility for investors. This process allows individual investors to purchase fractions of an asset, thus reducing the overall cost and enabling wider participation in the market.
In the field of chemistry, fractionisation is often associated with the separation of mixtures or compounds into their individual components or fractions. This technique is frequently used in industries such as oil and gas, where crude oil is fractionated into various petroleum products based on their boiling points.
From an economic perspective, fractionisation can also pertain to the fragmentation or decentralization of an industry or market. This can occur when a large entity or monopolistic industry is divided or diversified into smaller entities or sectors, promoting competition and stimulating innovation.
Overall, fractionisation involves the process of breaking down or splitting a whole into smaller, more manageable parts or fractions, allowing for greater flexibility, accessibility, and efficiency in finance, chemistry, and economics.
