Cher Bourg Stocks

Small Cap Stocks

Small cap stocks refer to shares of publicly traded companies with a relatively small market capitalization, typically defined as companies with a market value between $300 million and $2 billion. These stocks are usually considered more volatile and riskier compared to large-cap stocks, as smaller companies may face greater challenges in terms of stability, resources, and market influence. However, they often present opportunities for substantial growth potential, as they can expand more rapidly than established companies. Investors may choose small cap stocks for diversification in their portfolios, seeking higher returns that can come from investing in emerging businesses or niche markets. Due to their size, small cap companies might also receive less attention from analysts and institutional investors, leading to potential undervaluation.