Definition of Micro Cap Company
A Company with Micro Cap Stock is known as a Micro Cap Company.
What is a Micro Cap Stock?
The Micro Cap Stock is the stock of a company with market capitalization in the range of $50 million to $250 million.
(This is an approximate figure as noted in the U.S. Securities and Exchange Commission website.)
- Most of the Micro Cap Company’s stocks are generally traded "Over-the-counter" (OTC) market.
- The daily trading volumes are not so large and mostly go pretty low on the long run too.
- The pricing of the micro-cap stocks are also low in general.
- These companies are mostly new to the market with limited or no operations and assets. Their revenues are also low with some of their products still under development stage.
- Generally the investments in the stocks of micro cap companies are considered risky.
- The requirements for listing in securities exchange is liberal compared to others.
Examples of Micro-Cap Companies
- Quotient Limited - market cap $213.94mn
- Sequenom, Inc. - market cap $184.74mn
- American Independence Corp. - market cap $151.33mn
- ASB Bancorp, Inc. - market cap $109.03mn
- Radio One, Inc. - market cap $76.83mn
Source: nasdaq.com (data as on 14th March 2016)
- Mega Cap Company
- Large Cap Company
- Mid Cap Company
- Small Cap Company
- Nano Cap Company