| Small
Cap |
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Refers
to stocks with a small market capitalization. The definition of small
can vary, small-cap stocks are generally below $750 million in market
cap. A market capital below $350 million, stocks are sometimes referred
to as micro-cap stocks.
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One of the biggest advantages with small-cap stocks is being
able to beat institutional investors in. Most mutual funds have restrictions that limit them from buying enough of a small-cap to make a meaningful position in their fund. To do so, they'll
usually have to file with the SEC which means tipping their hand and inflating the previously attractive price. |
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