All Stock Market Giants Were Small Caps Once
12 June 2008For the last years S&P 500 has been outperformed by small cap stock picks. For sure, microcap stock picks can not be compared to big cap blue chips that are preached by the market pundits. At the same time no one would deny that micro caps is the best investing opportunity possible with a minimum risk applied.
Moreover, you can’t imagine W.Disney, MGM, Cisco and other gigantic corporations without the first considerable investments when everything they could offer were risky micro cap stocks. I wish I were among these first adventureous investors!
If you are interested in the actual money side of micro caps - no one will give you a definite answer as the equivalent differs greatly. For some people these stocks are with a market capitalization of under $1 billion, for others the cut-off may be set as low as $100 million.
It is well-known that all the stocks have a definite precise classification and are divided into big caps, medium caps, or small cap stocks. The division is based on their total outstanding shares value which is called a market capitalization. It is always up to an investor to decide what caps to acquire and how to minimize the risk. Small cap investor relations companies often can help!
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