Micro-cap stock

(redirected from Micro Cap)

Micro-cap stock

Micro-Cap Stock

A stock with a very low amount of market capitalization. In general, a micro-cap company has a market capitalization of less than $250 million, but there is no hard-and-fast rule. Some brokerages or exchanges have slightly different definitions of micro-cap. Some indexes track micro-cap companies. See also: High-cap, Mid-cap, Low-cap.

Micro-cap stock.

A micro-cap stock is one with a smaller market capitalization -- sometimes much smaller -- than stocks described as small-caps. (Market capitalization is figured by multiplying the current market value by the number of outstanding shares.)

The cut-off for deciding that a stock belongs in one category or the other is arbitrary. However, the capitalization thresholds currently being suggested for micro-caps range from $50 million to $150 million.

Micro-caps are not only the smallest of the publicly traded corporations, but they are also the most volatile. That's partly because they often lack the reserves that may allow a larger company to weather rough periods.

And there are generally relatively few shares of a micro-cap company, so a large transaction may affect the stock's price quite a bit. In contrast, a similar transaction might not affect the stock price of a larger company that had many more shares in the market quite as much.

Mentioned in ?
References in periodicals archive ?
11, 2014 /PRNewswire/ -- Falcon Point Capital, LLC of San Francisco announces today that in July it received a $20 million investment into to the firm's Micro Cap Growth Strategy from a large state plan.
The median market cap in the Micro Cap index is only $184-million, while the largest individual component has a market cap size of about $1.
Others in the top 10 included Oberweis Micro Cap (OBMCX), Perritt Micro Cap Opportunities (PRCGX), and Fifth Third Micro Cap Value (MXSAX), all of which had annual returns between 25% and 30%.
Eudaimonia Asset Management, LLC (EAM) is pleased to announce that it has been hired by the State of Oregon to manage a $50 million US micro cap growth equity mandate.
5 /PRNewswire/ -- With its First 2010 Micro Cap Conference scheduled for January 11, 2010, Sidoti & Company, Wall Street's largest, fastest-growing small cap equity research provider, is empowering investors with its three keys for targeting micro cap stocks, while also announcing that Knight Capital Group (Nasdaq: NITE) is bringing its small cap market leadership to the event as a co-sponsor.
SALT LAKE CITY -- Wasatch Advisors has re-opened all of its micro cap funds to new and existing investors.
Sidoti & Company builds micro cap leadership as tumultuous equity markets offer excellent values
Investing in micro cap companies will be more volatile and loss of principal could be greater than investing in larger, more established companies.
Prentice, a former partner, managing director and lead portfolio manager for Nicholas-Applegate's Micro Cap and Ultra Micro Cap strategies; Montie L.
ETF Options Will Also Be Launched Based on the Micro Cap Segment
There will be 98 securities added to the MSCI US Micro Cap Index.