A Company with Small Cap Stock is known as a Small Cap Company.
What is a Small Cap Stock?
The Small Cap Stock is the stock of a company with market capitalization in the range of $250 million to $2 billion.
(This is an approximate figure as noted in the U.S. Securities and Exchange Commission website.)
- The daily trading volumes are in good numbers not too high though.
- The pricing of the small-cap stocks are generally in the medium scale.
- Their revenues are not too high but in medium range as well as their assets and operations.
- The investments in the stocks of small cap companies are considered less risky.
- Coca-Cola Bottling Co. Consolidated - market cap $1.63bn
- iShares S&P India Nifty 50 Index Fund - market cap $821.03mn
- QIWI plc - market cap $537.71mn
- Hawkins, Inc. - market cap $361.97mn
- Kirkland's, Inc. - market cap $292.14mn
Key Concern Points of Small-Cap Company
- High risk investment
- Low reserves
- Rather young company
- High number of individual investors than institutional investors
- Mega Cap Company
- Large Cap Company
- Mid Cap Company
- Micro Cap Company
- Nano Cap Company