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.
It's difficult to determine how to trade options successfully due to the fact that current prices reflect and discount both recent conditions and future expectations. That’s where the CounterPoint Options system comes in. Here is one of its current trades, a bullish play on the IWM. More