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Nano-Cap Company : Definition & a Brief Summary

Definition of Nano Cap Company

A Company with Nano Cap Stock is known as a Nano Cap Company.

What is a Nano Cap Stock?

The Nano Cap Stock is the stock of a company with market capitalization up to $50 million.

(This is an approximate figure as noted in the U.S. Securities and Exchange Commission website.)

Other Characteristics
  • Most of the Nano 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 nano-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 nano cap companies are considered risky.
  • The requirements for listing in securities exchange is liberal compared to others.

Examples of Nano-Cap Companies
  • Canterbury Park Holding Corporation - market cap $42.5mn 
  • Orion Energy Systems, Inc. - market cap $37.19mn
  • Cyanotech Corporation - market cap $27.77mn
  • OXiGENE, Inc. - market cap $17.79mn
  • Qualstar Corporation - market cap $5.03mn

Source: nasdaq.com (data as on 14th March 2016)

Related Posts:
  • Mega Cap Company
  • Large Cap Company
  • Mid Cap Company
  • Small Cap Company
  • Micro Cap Company
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