Investing for Beginners , investing

Small cap stocks are stocks of lower market capitalization. All stocks may be classified to large cap, mid cap and small cap (if ignoring mega, nano and other modern classification caps). There is no united classification when company’s stock can be assigned to small cap, but small cap doesn’t mean that it should be a family company of 100 employees. Many small cap companies are normal companies with growth potential. 

Small cap investment may be riskier than large cap stocks, but also can bring a higher return; because of lower liquidity or investment rules most institutional investors are avoiding investment in small cap stocks. 

Read more about small cap stock investments.