Small-Cap Stocks - Page 3

Small-cap stocks refer to shares of publicly traded companies with a relatively small market capitalization, typically defined as having a market cap between $300 million and $2 billion. These companies are often in the early stages of growth and may offer higher potential for appreciation compared to larger, more established companies. Small-cap stocks are known for their volatility and can be more susceptible to economic downturns, making them riskier investments. However, they also provide opportunities for significant returns and are often favored by investors looking for growth potential. Small-cap stocks can represent emerging industries and innovative businesses, making them attractive to those willing to take on more risk for the possibility of higher rewards.