Micro-cap stock

(redirected from Microcap Stock)
Also found in: Legal.

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 ?
Transactions first restarted at 3:00pm EDT (1900GMT) in a single microcap stock, Atlantic American, a test case picked for its front-of-the-alphabet ticker.
How Liquidity Impacts the Value of a Microcap Stock
Each month we will select a microcap stock and investigate that company.
The digital version of the Summer/Fall issue of MicroCap Review Magazine, the Official Magazine for the MicroCap Stock Market, can be viewed at: www.
MIAMI -- Microcap Stock Guru Jason Fung announces launch of new service.
LAS VEGAS -- Silver State Bancorp (Nasdaq: SSBX) today announced that it has been added to the Russell Microcap Stock Index, which measures the performance of the microcap segment of the U.
About Goldman Small Cap Research: Led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, special market reports, and popular investment newsletters.
Peter Chin, CEO of Disability Access Corporation, stated, "While we fully support the Securities and Exchange Commission's efforts to combat corporate hijackings and other abuses that affect the integrity of the microcap stock market and all publicly traded companies, we are bewildered by being included in this group being targeted.
Both the Russell Microcap Stock Index and Newtek's own proprietary merchant processing data showed strong growth among small and medium-sized businesses, leading the index higher with a.
com, and many others, RedChip grew to become the recognized leader in Microcap Stocks and Small Cap Stocks research.
About one-third of the portfolio is invested in either small-cap or microcap stocks, according to Morningstar.
Guanxi' is the cornerstone of Silverado's China test program to attract a new base of Asia-based stock market players, known for their interest in highly liquid and affordably priced, undervalued microcap stocks.