STRATEGY of WEALTH
(c) Copyright 2012. All rights reserved. www.StrategyOfWealth.com
Wealth Resources:
Connect With Us On:
The Wheel Of Wealth:
Wealth Events:
Subscribe:
Referral Rewards:
What are Small Cap Stocks?
A small-cap stock may be more likely than a large company to adopt or create innovative new ideas or services. A small-cap stock often has a lower level of institutional interest, as many funds have limits on the percentage of a company they may own. This in turn increases the trading volatility of a small-cap stock, potentially allowing for more extreme (more profitable) entries and exits. A small-cap stock does tend to carry more risk than a large-cap. With a less diversified and potentially unproven business model, a small-cap stock is susceptible to ever- changing economic/market conditions.
A small-cap stock may be more likely than a large company to adopt or create innovative new ideas or services. A small-cap stock often has a lower level of institutional interest, as many funds have limits on the percentage of a company they may own. This in turn increases the trading volatility of a small-cap stock, potentially allowing for more extreme (more profitable) entries and exits. A small-cap stock does tend to carry more risk than a large-cap. With a less diversified and potentially unproven business model, a small-cap stock is susceptible to ever- changing economic/market conditions.