Small-cap stocks are generically valued somewhere between $300 million and $2 billion. As such, they are smaller companies, usually in the earlier stages of a business life cycle. Because of this, there is a greater risk associated when investing as operations are smaller and budgets tighter. This is often a highly- speculative market so investors should tread carefully.
But the reason, so many investors want to back a small-cap stock is the potential of growth from this small base. The right company at the right time can give massive returns to investors in the long run ...
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