
Microcap
A microcap refers to a small company's stock with a very low market capitalization, typically under $300 million. These companies are often less established, newer, or operate in niche markets. Investing in microcaps can offer significant growth potential but usually comes with higher risks, including limited liquidity and less available information. Because of their size, microcap stocks can be more volatile and sensitive to market changes, making them suitable for experienced investors who can tolerate higher risks in pursuit of substantial returns.