Small Cap Stocks

Small cap stocks refer to shares of publicly traded companies with a relatively small market capitalization, typically ranging from $300 million to $2 billion. These companies are often in the early stages of growth, and their smaller size may make them more volatile and riskier investments compared to larger, more established firms. Investors are drawn to small cap stocks for their potential for significant growth, as smaller companies can expand rapidly if successful. However, they may also be more susceptible to economic downturns and market fluctuations. The appeal of small cap stocks lies in their ability to provide substantial returns, but they also carry higher risks, making thorough research and analysis crucial for investors considering these equities.