Small Caps

small cap stocks Trade of the Day: iShares Russell 2000 (IWM)
Source: “Zitoune cyclisme” by Jeremie0033 – Own work. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons – http://commons.wikimedia.org/wiki/File:Zitoune_cyclisme.JPG#mediaviewer/File:Zitoune_cyclisme.JPG
Even though definitions fluctuate over time and companies shrink or grow, small-cap stocks generally are companies with market capitalization in between $300 million and $2 billion. Market capitalization, which aims to estimate a company’s value, is the total outstanding shares multiplied by the price of the stock.
Small-cap stocks can be great investments because they don’t get a lot of attention, which leads analysts to undervalue them, despite large growth potential. Plus, retail investors can buy into small-cap stocks more easily.

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