Small-Cap Stocks

Small-cap stocks refer to shares of companies that have a relatively small market capitalization, typically defined as between $300 million and $2 billion. These companies are often in the early stages of growth and may offer significant potential for appreciation in value compared to larger companies. However, small-cap stocks can also carry a higher level of risk and volatility due to their size, limited resources, and market presence. Investors are often attracted to small-cap stocks for their potential for substantial returns, although they should also consider the higher risks associated with investing in smaller companies.