Micro-Cap Stock

A Micro-Cap Stock refers to a company with a small Market Capitalization, typically ranging from $50 million to $300 million. These Stocks are often traded on smaller exchanges or over-the-counter (OTC) markets and can be more volatile than larger-cap Stocks.

Examples of Micro-Cap Stocks include:

  • Company A: Market cap of $75 million, operates in the tech sector.
  • Company B: Market cap of $150 million, focuses on renewable energy solutions.

Cases of Micro-Cap Stocks:

  • During a market rally, a Micro-Cap Stock can see significant gains due to increased investor interest.
  • Conversely, economic downturns may lead to larger percentage losses for Micro-Cap Stocks compared to their larger counterparts.