A beginner’s guide to small caps
1.Size A small cap is classified as a company with a market capitalization between $300 million and $2 billion. 2.Risk Small caps are riskier than larger cap stocks as they are smaller companies and may still be in the growth stage. Larger caps generally have a more mature business and have more resources to weather any economic downturns. As large cap stocks have been operating for a while, they have established clients and are more stable companies. 3.Returns As large …
