Many online readers have emailed us about how to get started with Small Cap Stock investing. As a Micro Cap and Small Cap Company Investor Relations firm, we love to teach people about the highs and lows of investing in risky stocks–generally small cap and micro cap companies. Before reading any articles on the web, one should read “Microcap Stock: A Guide for Investors” by The Securities and Exchange Commission.
Below is the beginning to an article found in InvestingDaily which we thought might be helpful to new investors in the small cap arena:
Strictly defined, small cap stocks are companies with relatively small market capitalizations (or the total value of all their outstanding shares).
The line between small caps, mid-caps and large caps has shifted over time and varies depending on whom you ask, but today’s small caps generally boast market caps of $250 million to $2 billion. Companies below $250 million are commonly referred to as “micro-caps,” while the smallest of the bunch (less than $50 million) are considered “nano-caps.” Read the entire story here…..