Micro-cap stock

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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.

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Small and micro cap stocks are the least efficient segment of the US equity markets and an ideal area for active management."
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Micro, small, mid and large micro cap stocks have gained YTD 25.86%, 25.85%, 19.15% and 12.91% respectively.
Micro, small, mid and large micro cap stocks have gained YTD 24.77%, 21.72%, 14.88% and 6.74% respectively.
Micro, small, mid and large micro cap stocks have gained YTD 29.38%, 26.36%, 20.09% and 13.5% respectively.
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