Investing in Small Cap Stocks. Are You Investing in Right Direction?
by John Smith Stock Market Investor
Investors seek high returns on stocks and continue to invest in the stock market. Investors with higher risk-taking abilities are rewarded higher. However, in most cases, investors tend to lose their capital because of a lack of proper research followed by the emotion of the investor. There are many instances, where investors have received a high return from small-cap stocks. The risk to reward ratio, in the case of small-cap stocks are higher compared to mid-cap and large-cap space. Usually, publicly-traded entities with a market cap ranging from $300 million – $2 billion, are referred to as small-cap companies.
What are Small-Cap Stocks?
Small-cap stocks are the stocks, which have smaller market capitalization or otherwise said as a small-sized company. Although small-cap stocks may not be on the priority of an investor as the market’s large-cap stocks, however, the trending small-cap stocks on a stock exchange carry the potential to provide good returns. Some of Australia’s most popular company brands form part of the best small-cap stocks on ASX 2019, which we would discuss later in the article.
Created on Oct 22nd 2019 03:09. Viewed 260 times.